Securities and Exchange Commission v. Kara et al

Filing 136

ORDER resetting CMC. Case Management Statement due by 8/20/2015. Further Case Management Conference set for 8/27/2015 10:30 AM in Courtroom 5, 17th Floor, San Francisco.. Signed by Judge Edward M. Chen on 6/8/15. (bpf, COURT STAFF) (Filed on 6/8/2015)

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JINA L. CHOI (N.Y. Bar No. 154425)
ERIN E. SCHNEIDER (Cal. Bar No. 216114)
ROBERT L. TASHJIAN (Cal. Bar No. 191007)
[e-mail]

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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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SECURITIES AND EXCHANGE
COMMISSION,

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

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Plaintiff,
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JOINT STATUS REPORT AND
UPDATED CASE MANAGEMENT
CONFERENCE STATEMENT

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

Further Case Management Conference:
June 11, 2015, 10:30 a.m.
Honorable Edward M. Chen
Courtroom 5, 17th Floor

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Defendants.
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This matter is currently set for a Further Case Management Conference on June 11, 2015.

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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 were also charged in related criminal cases before this Court.

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BACKGROUND

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A jury returned a guilty verdict regarding the charges against defendant Bassam Salman
on September 30, 2013. See United States v. Bassam Yacoub Salman, Case No. 11-CR-625

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

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Salman is appealing the verdict to the Ninth Circuit Court of Appeals.

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A jury returned a guilty verdict regarding the charge against defendant Karim Bayyouk

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on September 3, 2013. See United States v. Karim Iskander Bayyouk, Case No. 12-CR-420

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

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Mr. Bayyouk is appealing the verdict to the Ninth Circuit Court of Appeals.

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Defendant Michael Kara pleaded guilty to two counts and was sentenced by the Court on

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December 12, 2014. See United States v. Mounir Fayez Kara, Case No. 12-CR-417 EMC. The

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defendant and the government stipulated to an amount of restitution, which the Court approved

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on April 27, 2015. The Court entered an amended judgment on April 29, 2015.
Defendant Maher Kara also pleaded guilty to two counts and was sentenced by the Court

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on December 23, 2014. See United States v. Maher Fayez Kara, Case No. 12-CR-417 EMC.

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STATUS

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Counsel for the Commission and counsel for Mr. Salman and Mr. Bayyouk have reached

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an agreement in principle to resolve the pending civil claims against both defendants.

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Commission staff is in the process of recommending the proposed resolutions to the

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Commission. The staff anticipates that the Commission will consider the staff’s

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recommendation within the next four weeks. Commission approval of the two proposed

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settlements would completely resolve the pending action against Mr. Salman and Mr. Bayyouk,

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subject to the Court’s ultimate approval and entry of final judgment.

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Counsel for the Commission and counsel for Maher Kara have also reached an agreement

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in principle. Commission staff intends to recommend the proposed resolution to the

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Commission, a process that would take approximately six to eight weeks.

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Commission counsel and counsel for Michael Kara have begun to discuss a resolution

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now that the Court has entered an amended judgment in his criminal matter. Any agreement in

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principle to resolve the Commission’s claims would likely be considered by the Commission at

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the same time it considers the proposed resolution with defendant Maher Kara.

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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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REQUEST
In light of the current status, the parties would propose that the Court set a further Case

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Management Conference in August 2015.

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Dated: June 4, 2015

Respectfully submitted,

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/s/ Robert L. Tashjian
ROBERT L. TASHJIAN
Attorney for Plaintiff
SECURITIES AND EXCHANGE COMMISSION

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/s/ George C. Harris
GEORGE C. HARRIS
JUSTIN D. HOOGS
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
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in its filing, and I shall maintain records to support these concurrences.
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/s/ Robert L. Tashjian
ROBERT L. TASHJIAN

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RT
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ard M.

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Judge Ed

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ER

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

Chen

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UNIT
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R NIA

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IT IS SO ORDERED that the further CMC
is reset for 8/27/15 at 10:30 a.m. An
updated joint CMC statement shall be
filed by 8/20/15.
S DISTRICT
TE
C
_______________________________
TA
D
ERE
Edward M. Chen
O ORD D
IT IS S
DIFIE
AS MO
U.S. District Judge
FO

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N

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D IS T IC T O
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JOINT STATUS REPORT
AND UPDATED CMC STATEMENT