Securities and Exchange Commission v. Kara et al

Filing 125

ORDER RESETTING CMC FOR 10/9/14 AT 10:30 A.M. Case Management Statement due by 10/2/2014. Further Case Management Conference set for 10/9/2014 10:30 AM in Courtroom 5, 17th Floor, San Francisco.. Signed by Judge Edward M. Chen on 6/24/14. (bpf, COURT STAFF) (Filed on 6/24/2014)

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JINA L. CHOI (New York Bar No. 154425)
MICHAEL S. DICKE (Cal. Bar No. 158187)
ROBERT L. TASHJIAN (Cal. Bar No. 191007)
[e-mail]
LLOYD FARNHAM (Cal. Bar No. 202231)
[e-mail]
Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
44 Montgomery Street, 28th Floor
San Francisco, California 94104
Telephone: [phone]
Facsimile: [phone]

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

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JOINT STATUS REPORT AND
UPDATED CASE MANAGEMENT
CONFERENCE STATEMENT

Plaintiff,

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Case No. 3:09-cv-1880-EMC

SECURITIES AND EXCHANGE
COMMISSION,

v.

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MAHER F. KARA, MICHAEL F. KARA,
BASSAM Y. SALMAN, and
KARIM I. BAYYOUK,

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Defendants.

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Further Case Management Conference:
June 26, 2014, 10:30 a.m.
Honorable Edward M. Chen
Courtroom 5, 17th Floor

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This matter is currently set for a Further Case Management Conference on June 26, 2014.

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The parties submit this Joint Status Report and Updated Case Management Conference

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Statement to update the Court on the status of the proceedings in this civil case. The defendants

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remaining in this action are also involved in pending criminal cases. Two defendants have

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already been sentenced, and two remaining defendants are currently scheduled to be sentenced in

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August and September 2014. Counsel for the Commission has discussed potential resolution of

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the civil case with each remaining defendant, but no proposed resolutions have been finalized.
SEC V. KARA, ET AL.
CASE NO. 3:09-CV-1880-EMC

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JOINT STATUS REPORT
AND UPDATED CMC STATEMENT

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There are four remaining defendants in this insider trading action brought by the

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Securities and Exchange Commission (“Commission”), (1) Maher Kara, (2) Michael Kara,

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(3) Bassam Salman, and (4) Karim Bayyouk. Each of the defendants in the Commission action

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is also a defendant in related criminal matters arising from the insider trading allegations or

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investigation that are also the subject of the Commission’s enforcement action. Maher Kara and

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Michael Kara have pled guilty but have not been sentenced (U.S. v. Kara, et al., Case No. 09-

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CR-0417 EMC). Michael Kara is scheduled to be sentenced on August 27, 2014, and Maher

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Kara is scheduled to be sentenced on September 10, 2014.

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On September 30, 2013, a jury returned a guilty verdict regarding the charges against

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Bassam Salman, U.S. v. Bassam Yacoub Salman, Case No. 11- CR-0625 EMC. The Court

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imposed a criminal sentence regarding Mr. Salman on April 9, 2014.

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On September 3, 2013, a jury returned a guilty verdict regarding the charge against

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Karim Bayyouk, U.S. v. Karim Iskander Bayyouk, Case No. 12-CR-0420 EMC. The Court

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imposed a criminal sentence regarding Mr. Bayyouk on April 15, 2014.

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No trial date has been set for the Commission’s civil action, and dates regarding

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discovery deadlines and pretrial dates have been vacated by prior orders. The Court held a case

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management conference in this case on October 26, 2012, the last time the parties to the civil

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case appeared before the Court, and directed the Commission matter stayed until the criminal

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matters are resolved. (Docket No. 113) On March 18, 2014, the Court continued the Further

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Case Management Conference until June 26, 2014 (after the criminal sentencing dates that were

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at that time set for April and May). The parties believe it is premature to set a discovery

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schedule until the criminal cases are resolved.

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Dated: June 19, 2014

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Respectfully submitted,
/s/ Lloyd Farnham
LLOYD FARNHAM
Attorney for Plaintiff
SECURITIES AND EXCHANGE COMMISSION

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SEC V. KARA, ET AL.
CASE NO. 3:09-CV-1880-EMC

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JOINT STATUS REPORT
AND UPDATED CMC STATEMENT

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/s/ George C. Harris
GEORGE C. HARRIS
Morrison & Foerster LLP
Attorneys for Defendant MAHER KARA

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/s/ Ismail Ramsey
ISMAIL RAMSEY
Ramsey & Ehrlich LLP
Attorneys for Defendant MICHAEL F. KARA

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/s/ Patrick W. Blegen
PATRICK W. BLEGEN
Attorneys for Defendant BASSAM Y. SALMAN

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/s/ Brian H. Getz
BRIAN H. GETZ
Attorneys for Defendant KARIM I. BAYYOUK

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In accordance with Civil L.R. 5-1, each of the signatories to this document has concurred
in its filing, and I shall maintain records to support these concurrences.

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/s/ Lloyd Farnham
LLOYD FARNHAM

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IT IS SO ORDERED that the further CMC is reset from 6/26/14 to 10/9/14
at 10:30 a.m. An updated joint CMC statement shall be filed by 10/2/14.
___________________
DISTRIC
EDWARD M. CHEN TES
TC
U.S. DISTRICT TA
JUDGE

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SEC V. KARA, ET AL.
CASE NO. 3:09-CV-1880-EMC

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JOINT STATUS REPORT
AND UPDATED CMC STATEMENT