Securities and Exchange Commission v. Amerindo Investment Advisors Inc.

CourtDistrict Court, S.D. New York
DecidedJanuary 8, 2021
Docket1:05-cv-05231
StatusUnknown

This text of Securities and Exchange Commission v. Amerindo Investment Advisors Inc. (Securities and Exchange Commission v. Amerindo Investment Advisors Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Securities and Exchange Commission v. Amerindo Investment Advisors Inc., (S.D.N.Y. 2021).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION, 2 05 Civ, 5231 (RIS) Plaintiff, : - against - AMERINDO INVESTMENT ADVISORS INC., : POST-JUDGMENT AMERINDO INVESTMENT ADVISORS, INC., ; CONTINUING WRIT OF AMERINDO ADVISORS UK LIMITED, 2 GARNISHMENT AMERINDO MANAGEMENT INC., 3 PURSUANT TO AMERINDO TECHNOLOGY GROWTH FUND, INC, 28 U.S.C. § 3205 AMERINDO TECHNOLOGY GROWTH FUND II, INC., | and TECHNO RAQUIA, S.A., Defendants, : and CITIBANK, N.A., : AMERICAN STOCK TRANSFER & TRUST CO., LLC, : and EQ SHAREOWNER SERVICES, Garnishees. :

TO: Garnishee, CITIBANK, N.A. c/o Legal Services Intake Unit 5800 Corporate Place Mail Code 451 Sioux Falls, SD 57108 Fax: (347) 809-6937 and Garnishee, AMERICAN STOCK TRANSFER & TRUST CO., LLC Attn.: Legal Department 6201 15th Avenue Brooklyn, NY 11219 Email: legalteamAST @astfinancial.com Fax: 718-921-8124 and Garnishee, EQ SHAREOWNER SERVICES c/o Mr. David Becker, Esq., Chief Risk and Compliance Officer, General Counsel 90 Park Avenue, 25th Floor New York, NY 10016 Email: david.becker@ equiniti.com

REQUESTED BY: United States Securities and Exchange Commission Elizabeth Goody 200 Vesey Street, Suite 400 New York, New York 10281 Email: GoodyE@sec.gov

ISSUED PURSUANT TO: 28 U.S.C. § 3205 In 2014, this Court entered a $17.9 million judgment against Amerindo Investment Advisors Inc. (“Amerindo US”), Amerindo Investment Advisors, Inc. (“Amerindo Panama”), Amerindo Advisors UK Ltd., Amerindo Management Inc., Amerindo Technology Growth Fund, Inc., and Amerindo Technology Growth Fund II, Inc. (“Defendants”), in favor of the Securities and Exchange Commission (the “Commission” or the “SEC”). (Dkt. No. 435.) Seeking to collect on that judgment, the Commission now petitions for a post-judgment writ of garnishment pursuant to 28 U.S.C. § 3205. The Court concludes that the Commission’s application satisfies the requirements for a writ, including the requirement that the United States represent in its application “that the garnishee is believed to have possession of property . . . in which the debtor has a substantial nonexempt interest.” 28 U.S.C. § 3205(b)(1)(C); see also id. § 3002(15)(B) (defining “United States” as “an agency, department, commission, board, or other entity of the United States”).1 Accordingly, IT IS HEREBY ORDERED that the garnishees “shall withhold and retain any property” in their possession, custody, or control in which Defendants have an interest at the time this writ is served, or in which Defendants may obtain a substantial nonexempt interest in the future, including nonexempt disposable earnings.2 Id. § 3205(c)(2)(F); see also id. § 3205(a). If

1 In light of the risk that others could execute a lien before this writ can be served upon the garnishees, the Court concludes that the presumption in favor of open records is overcome. See United States v. Amodeo, 71 F.3d 1044, 1050 (2d Cir. 1995). Accordingly, the Commission’s application and this writ shall remain under seal until the garnishees have been served. 2 “‘Property’ includes any present or future interest, whether legal or equitable, in real, personal (including choses in 2 a garnishee fails to withhold property in accordance with this writ, the garnishee may be held in contempt by the Court, or the Court may enter judgment against the garnishee for the value of the relevant Defendant’s nonexempt interest in such property, plus a reasonable attorney’s fee to the Commission. See id. §§ 3003(c)(8), 3205(c)(6). IT IS FURTHER ORDERED that, within 10 days of receiving a copy of this writ, the garnishees shall file with the Court a written answer as required by 28 U.S.C. § 3205(c)(4). The

garnishees shall serve copies of their answers on the Commission’s counsel and on Defendants by any acceptable method of service. See Fed. R. Civ. P. 5. This writ of garnishment shall terminate only by court order quashing the writ, exhaustion of the property in the garnishee’s possession or control, or satisfaction of the debt. See 28 U.S.C. 3205(c)(10). The following exhibits are attached to this writ: Exhibit A: notices and instructions for the garnishees; Exhibit B: a sample answer for garnishees; Exhibit C: notices and instructions for Defendants; Exhibit D: a sample claim for exemption and request for hearing to be used by Defendants.

action), or mixed property, tangible or intangible, vested or contingent, wherever located and however held (including community property and property held in trust (including spendthrift and pension trusts)) . . . .” 28 U.S.C. § 3002(12). “‘Earnings’ means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program.” Id. § 3002(6). “‘Disposable earnings’ means that part of earnings remaining after all deductions required by law have been withheld.” Id. at § 3002(5). “‘Nonexempt disposable earnings’ means 25 percent of disposable earnings, subject to section 303 of the Consumer Credit Protection Act.” Id. at § 3002(9). 3 To assist the garnishees, the following information is provided:

Amerindo US owes a $17,969,803.27 penalty, plus post-judgment interest pursuant to 28 U.S.C. § 1961, and has a last known address of 399 Park Ave, 22nd Floor New York, NY 10022 and previously used Robinson Brog, 875 Third Ave, 9th Floor New York, NY 10022 as an agent for service. Amerindo Advisors UK Ltd. owes a $17,969,803.27 penalty, plus post-judgment interest pursuant to 28 U.S.C. § 1961, and has a last known address of 43 Upper Grosvenor St., London, W1X 9PG.

Amerindo Panama, Amerindo Management Inc., Amerindo Technology Growth Fund, Inc., Amerindo Technology Growth Fund II, Inc., and Techno Raquia, S.A. were Panamanian entities without a known address. Each owes a civil penalty in the amount of $17,969,803.27, plus post-judgment interest thereon pursuant to 28 U.S.C. § 1961.

SO ORDERED.

Dated: December 21, 2020 New York, New York RICHARD J. SULLIVAN United States Circuit Judge Sitting by Designation

4 EXHIBIT A

NOTICES AND INSTRUCTIONS TO GARNISHEE INSTRUCTIONS TO GARNISHEE You have been served with a Continuing Writ of Garnishment pursuant to 28 U.S.C. § 3205. Pursuant to that Writ and section 3205, you are required to file a written answer with the Clerk of Court within 10 days of receiving a copy of the Writ.

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Related

United States v. Amodeo
71 F.3d 1044 (Second Circuit, 1995)

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Securities and Exchange Commission v. Amerindo Investment Advisors Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/securities-and-exchange-commission-v-amerindo-investment-advisors-inc-nysd-2021.