On January 16, 2013, the Commission settled proceedings that were instituted on August 22, 2012, against MiddleCove Capital, LLC (“MiddleCove’) and Noah L. Myers (“Myers”) (collectively, the “Respondents”). The Commission found that, from approximately October 2008 through February 2011, Meyers violated federal securities laws when he engaged in fraudulent trade allocation at MiddleCove. The Commission ordered the Respondents to pay a total of $788,118.00 in disgorgement, prejudgment interest, and civil money penalties. See the Commission’s order:  Release No. 34-68669. 

On June 28, 2013, the Commission filed a motion in the District Court of Connecticut requesting the Court enter a default judgment against the Respondents to enforce the terms of their settlement agreement. On July 11, 2013, the Court entered a default judgment against the Respondents. See Default Judgment. 

As of March 20, 2017, the Respondents have paid a total of $37,491.02 into the Distribution Fund, and any future funds paid by the Respondents will be added to the Distribution Fund, for the distribution to harmed investors. 

On August 2, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator. See the Commission’s order:  Release No. 34-81287. 

On June 4, 2018, 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 proposes that Michael S. Lim, a Commission employee, serve as the Fund Administrator to oversee the administration and distribution of the Distribution Fund. The notice provided the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice:  Release No. 34-83364 and the Proposed Plan.

On July 19, 2018 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. 34-83669 and the Plan.

The Plan provides that the distribution of the Net Distribution Fund shall be made to certain harmed parties, previously identified by Commission staff, in accordance with paragraph 7 of the Plan.

For more information, please contact the Fund Administrator:

Michael S. Lim
Office of Distributions
Phone: 202-551-4659
Email: limm@sec.gov