After obtaining a $512,000 judgment for clients in a high-profile securities fraud case against First Nationle Solutions, LLC and Perry Santillo, attorneys at Mika Meyers, PLC are now seeking to intervene in an SEC enforcement action filed against the fraudsters in federal court in New York in order to request that the court lift an asset freeze placed on the fraudsters’ assets. According to court filings, the fraudsters have $18 million in frozen assets.
Judgment creditors are sometimes permitted to intervene in SEC enforcement actions and other civil cases to enforce their rights as judgment creditors. Securities and Exchange Commission v. Flight Transportation Corporation, 699 F.2d 943 (8th Cir. 1983) (creditors were allowed to intervene in an SEC action against a corporation seeking disgorgement to defrauded investors because if the assets were disgorged the creditors would be unable to obtain a full satisfaction of their claims); Holborn Oil Trading Ltd. v. Interpetrol Bermuda Ltd., 658 F. Supp. 1205 (S.D.N.Y. 1987) (allowing a judgment creditor to intervene where the judgment debtor’s only assets were involved in the action; recognizing that “Courts have held that creditors or judgment creditors of a party to an action may intervene to assert a lien on any proceeds or to claim their share of the proceeds of the action”; and distinguishing cases “not relating to judgment creditors” and not “involve[ing] provable claims which have been reduced to judgment.”) (emphasis added); Gale v. Stallone, 1993 U.S. Dist. LEXIS 14476 (S.D.N.Y. 1993) (holding that, “as a judgment creditor, [intervenor] ha[d] an interest in the property at issue sufficient enough to allow for its intervention” in rival creditor’s lawsuit, and that the intervenor was “entitled to a lien on plaintiff’s assets sufficient to satisfy the judgment.”) (emphasis added).
The hearing on the motion to intervene will be held in Manhattan on September 14, 2018.