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Securities
Securities Fraud
Fraud and Misrepresentation

Securities and Exchange Commission v. International Realty Holdings, Ottoniel Medrano, Leticia Isabel Medrano

Published: Mar. 12, 2011 | Result Date: Jul. 28, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 2:09-cv-01945-DDP-PLA Settlement –  $761,497

Court

USDC Central


Attorneys

Plaintiff

Andrew G. Petillon

Gregory C. Glynn

Finola H. Manvelian
(Securities and Exchange Commission)

John M. McCoy III
(Law Office of John McCoy)

Bernard B. Smyth
(U.S. Securities and Exchange Commission)

Rosalind R. Tyson


Defendant

Dmitry Y. Gurovich


Facts

International Realty Holdings (IRH) began offering sale of preferred stock in October 2008.

The federal Securities and Exchange Commission filed suit against IRH and its officers, Ottoniel and Leticia Medrano, alleging fraud.

Contentions

PLAINTIFF'S CONTENTIONS:
The SEC contended that IRH and the Medranos made numerous misrepresentations to investors, including claims that prominent individuals were IRH board members and owners. The SEC further claimed that IRH represented it owned 15 lots of property in Asia, which were actually owned by another, unaffiliated, company.

DEFENDANTS' CONTENTIONS:
IRH and the Medranos denied making the misrepresentations, contending they acted in good faith.

Damages

The SEC sought $700,000 in fraudulently induced investments.

Result

The parties stipulated to entry of Final Judgment against defendants for $761,497.


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