Not a Lexis Advance subscriber? Try it out for free.

SEC v. Boock

United States District Court for the Southern District of New York

May 10, 2011, Decided; May 10, 2011, Filed

09 Civ. 08261 (DLC) (DF)

Opinion

REPORT AND RECOMMENDATION

TO THE HONORABLE DENISE L. COTE, U.S.D.J.:

In this case, plaintiff Securities and Exchange Commission ("SEC") has asserted claims for securities violations against defendants Irwin Boock, Stanton B.J. DeFreitas ("DeFreitas"), Nicolette D. Loisel ("Loisel"), Roger L. Shoss ("Shoss"), and Jason C. Wong ("Wong") (collectively, "Defendants"), [*2]  and relief defendants Birte Boock and 1621566 Ontario, Inc. ("1621566 Ontario") (together, "Relief Defendants"). After Irwin Boock, DeFreitas, Birte Boock, and 1621566 Ontario failed to answer or otherwise respond to the Complaint, the Court granted a default against these parties and referred the matter to me to conduct an inquest and to report and recommend concerning the amount of any disgorgement and/or civil penalties. (Dkt. 33.) Irwin Boock and Birte Boock, however, separately moved to set aside the entries of default against them.

For the reasons that follow, I recommend that Birte Boock's motion to set aside the default against her (Dkt. 64) be granted; but that Irwin Boock's motion to set aside the default against him (Dkt. 63) be denied.

As to the amounts that should be awarded on default judgments against defendants Defreitas and Irwin Boock, I recommend that the Court grant the SEC's request that Defreitas be ordered to disgorge his ill-gotten gains in the amount of $2,480,072.40, plus pre-judgment interest. As to Irwin Boock, however, I recommend that the SEC's request for an order of disgorgement be denied, without prejudice to the SEC's supplementing the record to demonstrate [*3]  adequate evidentiary support for the amount of disgorgement it seeks. As to both of these defaulting defendants, I further recommend that the SEC's request for civil penalties be denied without prejudice.

BACKGROUND

Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.

2011 U.S. Dist. LEXIS 158797 *

SECURITIES AND EXCHANGE COMMISSION, Plaintiff, -against- IRWIN BOOCK, STANTON B.J. DEFREITAS, NICOLETTE D. LOISEL, ROGER L. SHOSS and JASON C. WONG, Defendants, -and- BIRTE BOOCK and 1621566 ONTARIO, INC., Relief Defendants.

Prior History: SEC v. Boock, 2010 U.S. Dist. LEXIS 59481 (S.D.N.Y., June 15, 2010)

CORE TERMS

default, disgorgement, deposition, transfers, civil penalty, recommend, hijacked, pro se, ill-gotten, violations, Exchange Act, Affirmation, proceeds, damages, shares, funds, gains, Securities Act, records, prejudgment interest, default judgment, entry of default, trading account, Willfulness, allegations, meritorious defense, alleged scheme, appearing, factors, inquest