Securities And Exchange Commission v. One or More Unknown Purchasers of Call Options for the Common Stock of TXU Corp.

Filing 109

MOTION by Plaintiff Securities And Exchange Commission for judgment to Identify Unknown Purchaser # 2 as Marcos Montero and Enter Agreed Final Judgment Against Defendant Montero (Attachments: # 1 Exhibit A Montero Letter June 19, 2007, # 2 Exhibit B Montero Consent, # 3 Text of Proposed Order as to Montero)(Brandt, Jennifer)

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION (CHICAGO) ________________________________________________ : SECURITIES AND EXCHANGE COMMISSION, : : Plaintiff, : : vs. : Civil Action No. 1:07cv1208 : ECF ONE OR MORE UNKNOWN PURCHASERS OF : Judge Lindberg CALL OPTIONS FOR THE COMMON STOCK OF : TXU CORP., et al., : : Defendants. : ________________________________________________: AGREED MOTION TO IDENTIFY UNKNOWN PURCHASER #2 AS MARCOS MONTERO AND ENTER AGREED FINAL JUDGMENT AGAINST DEFENDANT MONTERO Plaintiff Securities and Exchange Commission ("Commission") files this Agreed Motion to Identify Unknown Purchaser #2 as Marcos Montero and Enter Agreed Final Judgment Against Defendant Montero, and respectfully shows the Court as follows: 1. On March 2, 2007, the Commission filed suit against One or More Unknown

Purchasers of Call Options for the Common Stock of TXU Corp. and sought emergency ex parte relief in the form of an asset freeze to preserve the status quo pending the determination of the Commission's request for injunctive relief. The Court entered an Order granting the requested relief on March 2, 2007. 2. On March 28, 2007, the Court entered an order which, among other things,

permanently enjoined Unknown Purchaser #2 from violating certain of the federal securities laws, ordered the unknown defendants to identify themselves, and continued, for the duration of the litigation, the Court-ordered asset freeze.

3.

On June 19, 2007, in a letter to the Court and to Commission staff, Marcos

Montero, a Spanish citizen residing in Switzerland, identified himself as the person referred to in this action as "Unknown Defendant #2." A true and correct copy of that letter (without exhibits) is attached to this motion as "Exhibit A" and is fully incorporated herein. 4. Since that time, the Commission and Defendant Montero ("Defendant") have

engaged in settlement discussions, resulting in the presentation of an offer of settlement to the Commission, which the Commission accepted. Defendant's settlement offer is contained in his signed Consent, which the Commission is filing simultaneously with this agreed motion. A true and correct copy of the Consent is attached as Exhibit B to this motion. 5. Under the terms of the settlement agreement, Defendant has consented to the

entry of a final judgment that permanently restrains and enjoins him from violating, directly or indirectly, certain of the federal securities laws. 6. As a term of his Consent, Defendant has agreed that the Commission could

present the Agreed Final Judgment to the Court without further notice. However, counsel for the Commission has conferred with Defendant Montero, pro se, and represents to the Court that this motion is unopposed. The proposed Agreed Final Judgment Against Defendant Montero is attached to this motion. 7. The proposed Agreed Final Judgment provides that the Defendant will remit all

payments due per the terms of the Judgment to the registry of this Court. Once the funds are received, the Commission will move the Court to appoint a distribution agent to oversee the distribution of the funds to the harmed investors.

SEC v. One or More Unknown Purchasers of Call Options For the Common Stock of TXU Corp., et al. AGREED MOTION TO IDENTIFY DEFENDANT MONTERO AND ENTER AGREED FINAL JUDGMENT AGAINST MONTERO

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8.

Accordingly, the Commission respectfully requests that the Court: (1) identify

Marcos Montero as the Defendant previously referred to as "Unknown Purchaser #2 Through Fimat"; and (2) enter the proposed Agreed Final Judgment. DATED: January 12, 2009 Respectfully submitted,

/s/Jennifer D. Brandt JENNIFER D. BRANDT Texas Bar No. 00796242 J. KEVIN EDMUNDSON Texas Bar No. 24044020 STEPHEN J. KOROTASH Oklahoma Bar No. 5102 DAVID B. REECE Texas Bar No. 24002810 Securities and Exchange Commission Fort Worth District Office 801 Cherry Street, 19th Floor Fort Worth, TX 76102-6882 [phone] (jb) [phone] (fax) Local Counsel: Steven J. Levine Securities and Exchange Commission 175 West Jackson Street, Suite 900 Chicago, IL 60604-2601 [phone]

SEC v. One or More Unknown Purchasers of Call Options For the Common Stock of TXU Corp., et al. AGREED MOTION TO IDENTIFY DEFENDANT MONTERO AND ENTER AGREED FINAL JUDGMENT AGAINST MONTERO

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CERTIFICATE OF SERVICE I hereby certify that on the 12th day of January 2009, I electronically filed the foregoing Agreed Motion to Identify Unknown Purchaser #2 as Marcos Montero and Enter Final Judgment Against Defendant Montero and Notice of Presentment with the Clerk of the Court for the Northern District of Illinois, Eastern Division, by using the CM/ECF system which will send a notice of electronic filing to the CM/ECF participants, and also served the Motion and Notice on all known adverse parties by causing a true and correct copy thereof to be delivered to each of them in the manner indicated below: Spencer C. Barasch, Esq. Andrews Kurth LLP 1717 Main Street, Suite 3700 Dallas, TX 75201 Counsel for Defendant Rahim Via Federal Express Jeffrey Bailey, Esq. Bose McKinney & Evans, LLP 2700 First Indiana Plaza 135 North Pennsylvania Street Indianapolis, IN 46204 Counsel for the Sehgal Defendants Via Federal Express Francisco Javier Garcia c/o Swiss Federal Banking Commission Schwanengasse 12 P.O. Box CH-3001 Berne Switzerland Via Federal Express /s/Jennifer D. Brandt Jennifer D. Brandt Michael Bachner, Esq. Bachner & Herskovits, P.C. 26 Broadway, Ste. 2310 New York, NY 10004 Counsel for Defendant Naseem Via Federal Express Marcos Montero, Pro Se Moosgaessli 1 CH-8835 Feusisberg Switzerland Via E-mail, [e-mail]

SEC v. One or More Unknown Purchasers of Call Options For the Common Stock of TXU Corp., et al. AGREED MOTION TO IDENTIFY DEFENDANT MONTERO AND ENTER AGREED FINAL JUDGMENT AGAINST MONTERO

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