Securities & Exchange Commission v. Banc de Binary Ltd.

Filing 162

ORDER Granting Plaintiff's 155 Unopposed Motion to Establish a Fair Fund and Approve the Distribution of Funds Through a Parallel Action. Signed by Judge Robert C. Jones on 03/07/2016. (Copies have been distributed pursuant to the NEF - NEV)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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SECURITIES AND EXCHANGE
COMMISSION,

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[PROPOSED] ORDER GRANTING
PLAINTIFF SECURITIES AND
EXCHANGE COMMISSION’S
UNOPPOSED MOTION TO ESTABLISH A
FAIR FUND AND APPROVE THE
DISTRIBUTION OF FUNDS THROUGH A
PARALLEL ACTION

Plaintiff,

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Case No. 2:13-cv-00993-RCJ-VCF

vs.
BANC DE BINARY LTD, OREN SHABAT
LAURENT (f/k/a OREN SHABAT), ET
BINARY OPTIONS LTD., BO SYSTEMS
LTD. SEYCHELLES and BDB SERVICES
LTD. SEYCHELLES,
Defendants.

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This matter came before the Court upon Plaintiff Securities and Exchange Commission’s (the

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“SEC”) Unopposed Motion to Establish a Fair Fund and Approve the Distribution of Funds Through

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a Parallel Action. The Court having considered the memoranda and evidence filed by the parties, and

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all other argument and evidence presented to it, and good cause appearing therefor:

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IT IS HEREBY ORDERED that:

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(1) the SEC’s Motion is GRANTED;
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Case No. 2:13-cv-00993-RCJ-VCF

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(2) a “fair fund” is hereby established (the “Banc de Binary – Restitution Fund”) in
accordance with Section 308(a) of the Sarbanes-Oxley Act of 2002, 15 U.S.C. § 7246(a);
(3) the Banc de Binary – Restitution Fund shall consist of the $7.1 million in disgorgement

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and the $1.95 million in SEC civil monetary penalties agreed to be paid by defendants in

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settlement of this action and of the parallel enforcement action filed against the same

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defendants in this district, Commodity Futures Trading Commission v. Banc de Binary

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Ltd., et al., Case No. 2:13-cv-00992-MMD-VCF (the “CFTC Action”), which payments,

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according to defendants’ Consents to Final Judgment and proposed Final Judgments filed

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on February 22, 2016 (Dkt. Nos. 149-154), will be made directly to the National Futures

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Association (“NFA”) for distribution to harmed invstors;

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(4) in accordance with the proposed Consent Order for Permanent Injunction, Civil Monetary

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Penalty and Other Equitable Relief Against Defendants filed in the CFTC Action (the

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“CFTC Consent Order”) (CFTC Dkt. No. 169), the Banc de Binary – Restitution Fund

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shall be administered by the NFA, once it is appointed as Monitor in the CFTC Action;

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(5) to the extent that the NFA and the parties can reasonably locate them, the distribution

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shall be made pro rata to the 6614 customers on Exhibit A to the CFTC Consent Order

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(the “Identified Customers”), or to any additional U.S. customer who has or had a “Banc

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de Binary” account, as reflected on “Banc de Binary” account records, and who timely

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demonstrates that: he or she resided in the United States when he or she opened or traded

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in the account; and he or she deposited, on a net basis, more investment funds into the

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account than he or she withdrew out of the account during the time that the account was

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active;

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(6) the NFA shall be responsible for all further tax compliance and reporting obligations of

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the Banc de Binary – Restitution Fund and the payment of taxes, if any, will be made from

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the Banc de Binary – Restitution Fund;

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(7) in the event that any portion of the Banc de Binary – Restitution Fund is not distributed to

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injured investors, any residual amount remaining after completion of the distribution shall

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be paid to the U.S. Treasury; and
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(8) for each year until the distribution is completed, the NFA shall provide an annual report to

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counsel for the parties regarding the distribution, which report shall be filed with the

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Court.

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March 7, 2016
Dated: ____________________

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The Honorable Robert C. Jones
Honorable Robert C.
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United States District Court Judge
ted
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ct Court

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Case No. 2:13-cv-00993-RCJ-VCF