Securities and Exchange Commission v. Galleon Management, LP et al

Filing 261

ORDER: Accordingly, for the reasons stated in the attached letter, the Court hereby terminates this action with respect to defendant Plate. (Signed by Judge Jed S. Rakoff on 12/23/2011) (cd)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

x
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,

09 Civ. 8811 (JSR)

-v-

ORDER

GALLEON MANAGEMENT, LP, et al.,
Defendants.

x
JED S. RAKOFF, U.S.D.J.

On June 28, 2011, the Court entered a Consent Order and
Judgment as to defendant David Plate, ordering permanent injunctive
relief, disgorgement, and

udgment interest. The Consent Order and

Judgment, however, provided that the Court would determine at a later
date whether it would impose civil penalties against defendant Plate,
and if so, to what extent. On December 19, 2011, the Court received
the attached letter from the Securities and Exchange Commission,
requesting this Court terminate this action against
without imposing c
the reasons stated

endant Plate

I penalties. The Court agrees. Accordingly, for
the attached letter, the Court hereby terminates

this action with respect to defendant Plate.

SO ORDERED.

Dated: New York, New York
December 23, 2011

CJI~S.D.J.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

NEW YORK REGIONAL OFFICE

3 WORLD Fl'NANCIAL CENTER

ROOM 400

NEW YORK, NEW YORJ<. 102&1-1022

December 19> 2011

Via Facsimile

The Honorable Jed S. Rakoff
United States District Judge
U.S. District Court for the Southern District of New York
SOO Pearl Street
New York, NY 10007·1312
Re:

SEC v. Galleon Mgmt., LP, et al.; 09 Civ. 8811 (JSR)

Dear Judge Rakoff:
In accordance with Your Honor:s Individual Rule of Practice 1, and with prior
permission of the Court. counsel for the Commission submits this lener concerning defendant
David Plate. On June 28. 2011, the Court entered a Consent Order and Judgment as to
Defendant David Plate, ordering permanent injunctive relief, disgorgement, and prejudgment
interest. The order provided that th~ Court would determine at a later date whether, and to what
extent, civil penalties were appropriate. At the time the parties submittec;t the settlement for the
Court's approval, they agreed that a deferral of the decision whether to impose a civil penalty
was warranted, so that Mr. Plate's cooperation with the Commission and with the USAO could
be taken into consideration in the detemiination whether and to what extent civil penalties were
appropriate.
Since that time, Mr. Plate'S cooperation with the Conunission has been continuing and he
now has been sentenced in a parallel criminal action. Specifically, on November 2, 2011, The
Honorable Richard J. Sullivan sentenced Mr. Plate to a term of six-month's home confinement,
three years' probation, and forfeiture of$289,OOO. Judge Sullivan found that Mr. Plate did not
have the ability to pay a criminal fine.
In connection with the sentencing, the USAO submitted a letter, pursuant to Section
5Kl.l of the Sentencing Guidelines, describing Mr. Plate's cooperation with the US,AO, 10
which Judge Sullivan referred. Judge Sullivan remarked that he agreed with the Government's
position that Mr. Plate's cooperation was ''very substantial" and also noted that Mr. Plate was "a
very important witness at the trial" against Zvi Goffer and others. Judge Sullivan stated, "I think
there was no witness who was more important than [Mr. Plate] among the cooperating

SOO/C:OO'd

90:8L

LL~~/6L/ZL

The Honorable Jed S. Rakoff

12/19/2011
Page 2
witnesses." The Judge also found that Mr. Plate was "least culpable" among the cooperating

witnesses in that case.
Based on the forgoing, the Commission believes that further punitive sanctions in the
form of a civil penalty are not necessary under these circwnstances to further the Commission's
goals. The Commission respectfully requests that Your Honor tenninate this matter with respect
to Mr. Plate without imposing civil penalties. Counsel for Mr. Plate, Roland G. Riopelle, Esq.,
has infonned the undersigned that he agrees with the contents ofthls letter and joins in the
Commission's request. The parties remain available for a conference should the Court have any
further questions.

cc:

SOO/SOO'd

Roland G. Riopelle, Esq. (by email)

90:SL

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