On October 17, 2014 the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (the “Order”) against Anthony Coronati (“Coronati”) and Bidtoask LLC (“Bidtoask”) (collectively, the “Respondents”). In the Order, the Commission found that, from at least 2009 to 2013, the Respondents violated federal securities laws when they raised over $2 million from investors in several fraudulent offerings and misappropriated over $400,000.00 of that amount. The Commission ordered Coronati to pay a total of $400,000.00 in disgorgement, prejudgment interest, and civil money penalty. The Commission created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty, along with the disgorgement and prejudgment interest, collected could be distributed to those harmed by the Respondents’ conduct described in the Order (the “Fair Fund”).  See the Commission’s Order: Release No. 33-9666.

The Fair Fund consists of $150,000.00 paid by Coronati; any future funds paid pursuant to the Order will be added to the Fair Fund.

On October 30, 2014, the Commission issued an order appointing Damasco & Associates LLP (“Damasco”) as the Tax Administrator of the Fair Fund.  See the Commission’s Order: Release No. 34-73475. Damasco was acquired by Miller Kaplan Arase LLP and on June 30, 2017, the Commission issued a notice of name change for the Tax Administrator.  Seethe Commission’s Order: Release No. 34-81064. 

On February 22, 2017, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The Proposed Plan proposed Nichola L. Timmons, a Commission employee, serve as the Fund Administrator to oversee the administration and distribution of the Fair Fund. The notice provided the public with 30 days to submit their comments on the Proposed Plan.  See the Commission’s Notice: Release No. 34-80087 and the Proposed Plan. 

On April 17, 2017, the Commission issued an order approving the plan of distribution and published the approved plan of distribution (“Plan”).  See the Commission’s Order: Release No. 34-80469 and the Plan. 

The Plan provides that the distribution of the Fair Fund shall be made to affected investors who suffered a Harm Amount by virtue of the conduct described in the Order and as calculated per the methodology set forth in the Plan. 

On May 7, 2018, the Commission issued an order directing disbursement of $125,000.00 from the Fair Fund for distribution to harmed investors in accordance with the Plan. Seethe Commission’s Order: Release No. 34-83179.

For more information, please contact the Fund Administrator: 

Nichola L. Timmons
Office of Distributions
Securities and Exchange Commission
Telephone Number: 202-551-4456
Email: Timmons@sec.gov