Securities and Exchange Commission v. Lek Securities Corporation
- Denise Cote
- 1:17-cv-01789
- U.S. District Court · Southern District of New York
- 2
In Securities and Exchange Commission v. Lek Securities Corporation, Judge Cote ordered briefing on whether Liu affects the disgorgement judgment.
The Securities and Exchange Commission and defendants Vali Management Partners doing business as Avalon FA Ltd, Nathan Fayyer, and Sergey Pustelnik were affected by the order. It required briefing about the existing disgorgement judgment and did not resolve that issue.
What happened
In Securities and Exchange Commission v. Lek Securities Corporation, the court addressed a remand concerning a prior financial judgment against the defendants.
The court had entered judgment awarding the Securities and Exchange Commission $4,495,564 in disgorgement and $131,750 in prejudgment interest. Three defendants appealed, and the Second Circuit sent the case back for review after the Supreme Court decided Liu v. Securities and Exchange Commission.
The order required the Securities and Exchange Commission to file a memorandum about Liu’s effect on the judgment, followed by the defendants’ opposition and any reply. Judge Cote did not decide whether the disgorgement award complies with Liu.
The detailed version
- Securities and Exchange Commission v. Lek Securities Corporation · No. 1:17-cv-01789
- Denise Cote
- Nov. 23, 2020
Background
The court had entered a final judgment on April 14, 2020, awarding the Securities and Exchange Commission, among other relief, $4,495,564 in disgorgement and $131,750 in prejudgment interest. Vali Management Partners doing business as Avalon FA Ltd, Nathan Fayyer, and Sergey Pustelnik appealed that judgment on June 12, 2020.
Remand
On June 22, 2020, the Supreme Court issued its decision in Liu v. Securities and Exchange Commission. On November 20, 2020, the Second Circuit sent this case back to the district court to determine whether the disgorgement award was consistent with Liu.
Order
The court ordered the Securities and Exchange Commission to file a memorandum addressing Liu’s effect on the judgment by December 18, 2020. The defendants could file an opposition by January 15, 2021, and the Securities and Exchange Commission could file a reply by January 29, 2021. Judge Denise Cote’s order directed briefing and did not itself decide whether the disgorgement award complied with Liu.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.