Securities and Exchange Commission v. Nationwide Automated Systems Inc., Joel Gillis, Edward Wishner
Published: Dec. 28, 2018 | Result Date: Aug. 2, 2018 | Filing Date: Sep. 17, 2014 |Case number: 2:14-cv-07249-SJO-FFM Settlement – $33,000,000
Judge
Court
CD CA
Attorneys
Plaintiff
John W. Berry
(Munger, Tolles & Olson LLP)
Gary Y. Leung
(Securities and Exchange Commission)
Peter F. Del Greco
(Securities and Exchange Commission)
Defendant
Michael H. Swartz
(Winston & Strawn LLP)
for City National Bank
Jeanne Ellen Irving
(McKool Smith Hennigan)
for City National Bank
J. Michael Hennigan
(McKool Smith Hennigan PC)
for City National Bank
David N. Bigelow
(Girardi & Keese)
for Receiver William Hoffman
Robert W. Finnerty
(Girardi & Keese)
for Receiver William Hoffman
Thomas V. Girardi
(Girardi & Keese)
for Receiver William Hoffman
Michael R. Newhouse II
(Newhouse Law Group PC)
for Receiver William J. Hoffman
Facts
The Securities and Exchange Commission filed suit against Nationwide Automated Systems Inc., Joel Gillis, and Edward Wishner in relation to investments in automated teller machines.
Contentions
PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants sold ATM machines to investors, promising them 50 cents from each ATM transaction, and that unbeknownst to the investors the defendants paid them not with ATM revenue but with money from new investors.
Plaintiff claimed that defendants were guilty of fraud in connection with the sale of securities in violation of Section 10(b) of the Exchange Act and Rule 10b-5(b), Fraud in the offer and sale of securities violations of section 17(a)(2) of the securities act, fraud in the offer and sale of securities violating sections 17(a)(1) and (3) of the securities act, and the sale of unregistered securities violating sections 5(a) and 5(c) of the securities act.
DEFENDANTS' CONTENTIONS: Defendants denied the allegations.
Result
The parties agreed to a settlement in which defendants will place $33 million in a settlement fund.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390