On July 3, 2013, the SEC filed a complaint against Magdalena Tavella, Andres Horacio Ficicchia, Gonzalo Garcia Blaya, Lucia Mariana Hernando, Cecilia De Lorenzo, Adriana Rosa Bagattin, Daniela Patricia Goldman, and Mariano Pablo Ferrari (collectively, the "Selling Defendants") and Mariano Graciarena and Fernando Loureyro (collectively, together with the Selling Defendant, the "Defendants"). The complaint alleged that, from March 2013 to June 2013, the Defendants, directly or indirectly, violated Sections 5(a) and 5(c) of the Securities Act of 1933 by selling almost $34 million worth of securities in Biozoom, Inc. (f/k/a Entertainment Art, Inc.) unlawfully to the public as no registration statement was in effect for the Selling Defendants' resale of securities. See Complaint.

Pursuant to final judgments entered by the Court on December 8, 2014 and January 9, 2015, the Commission has recovered to date a total of $16,117,936, which partially satisfies the total amounts of disgorgement, prejudgment interest, and penalties ordered to be paid by the Defendants. See Final Judgment (Graciarena and Loureyro) and Final Judgment (Selling Defendants).

On May 19, 2015, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Distribution Fund (now known as the "Fair Fund").

On August 25, 2015, the Court created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for all funds received pursuant to the final judgments, and appointed Kurtzman Carson Consultants as the Distribution Agent to oversee the distribution of the Fair Fund to injured investors. See Order to Establish Fair Fund and Appoint a Distribution Agent.

On June 9, 2016, the SEC filed a motion to approve a plan of distribution, together with the plan of distribution and transfer the funds received by the SEC to the Distribution Agent. See Motion for an Order Approving Distribution Plan for the Fair Fund and the proposed Distribution Plan.

On June 14, 2016, the Court entered an order that approved the Distribution Plan and authorized the Commission to transfer the Fair Fund, less applicable fees, to the escrow agent established by KCC, for distribution in accordance with the Distribution Plan. See Order Approving Distribution Plan and Transfer Funds.

The Distribution Plan provides that the distribution of the Fair Fund shall be made to Eligible Claimants as provided under the terms of the Distribution Plan. An Eligible Claimant's Eligible Loss Amount, as determined in accordance with the Plan of Allocation contained in Appendix I to the Distribution Plan, will be used to determine the amount of their Distribution Payment. Proof of Claim Forms will be available on the Fair Fund's website, www.BiozoomFairFund.com and must be postmarked on or before the Claims Filing Deadline of October 31, 2016.

On March 23, 2018, the Court entered an order approving the transfer of funds to the Distribution Agent for distribution to Eligible Investors in accordance with the Distribution Plan. See the Court’s Order.

On March 28, 2019, the Court entered an order approving the disbursement of approximately $248,000 from the Fair Fund to the Distribution Agent for distribution to those Eligible Investors who filed late claims and any future Eligible Investors. See the Court's Order.

For more information, please contact the Distribution Agent.

Persons to Contact:
Distribution Agent: Kurtzman Carson Consultants
Telephone Number: 866-381-9100
Website: www.kccllc.com
Fair Fund Website: www.BiozoomFairFund.com
Email:  dmarotto@Kccllc.com