Securites and Exchange Commission, No. 3:2004mc00145 - Document 82 (N.D. Cal. 2017)

Court Description: Order granting stipulation regarding payment of income taxes and of tax preparation fees, Dkt. No. 80. Signed by Judge James Donato on 5/23/2017. (jdlc3S, COURT STAFF) (Filed on 5/23/2017)
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Securites and Exchange Commission Doc. 82 JINA L. CHOI (NY Bar No. 2699718) JOHNS. YUN (CA Bar No. 112260) 2 yunj@sec.gov SHEILA E. O'CALLAGHAN (CA Bar No. 131032) 3 ocallaghans@sec.gov 1 Attorneys for Plaintiff SECURITIES AND EXCHANGE 5 COMMISSION 44 Montgomery Street, Suite 2600 6 San Francisco, California 94104 Telephone: (415) 705-2468 7 Telecopy: (415) 705-2501 4 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION 10 11 12 SECURITIES AND EXCHANGE COMMISSION, Plaintiff, 13 v. 14 15 16 TERENCE M. COXON and WORLD MONEY MANAGERS, Defendants. 17 18 19 Miscellaneous Action No. CV 04-0145-MISC. MHP PLAINTIFF'S AND DEFENDANTS' STIPULATION AND PROPOSED ORDER REGARDING PAYMENT OF INCOME TAXES AND OF TAX PREPARATION FEES; SUPPORTING DECLARATIONS OF JUDE P. DAMASCO Date: N/A Time: N/A Judge: Courtroom: TBD 20 21 22 23 24 25 26 27 28 STIPULATION FOR ORDER Plaintiff Securities and Exchange Commission ("Commission") and defendants Terrence M. Coxon ("Coxon") and World Money Managers ("World Money"), by and through their attorneys, hereby enter into the following Stipulation Regarding Payment of Income Taxes and of Tax Preparation Fees (the "Stipulation"). On November 30, 2015, this Court entered a Stipulated Order authorizing the appointment of the accounting firm of Damasco & Associates, LLP to serve as the tax administrator for the amounts in the court registry for this proceeding. Docket No. 79. The Stip. To Pay Taxes CV 04-0145-MISC MHP Dockets.Justia.com 1 Court authorized Damasco & Associates, LLP to charge up to $1800.00 per tax year to file the 2 necessary fonns and make the necessary payments under the Internal Revenue Code. 3 Damasco & Associates might also bill for time involving negotiations with the Internal 4 5 Revenue Service to reduce or abate any interest or penalty charges. Id. As shown in the first Declaration of Jude P. Damasco, which is attached as Exhibit 1, 6 the Damasco & Associates firm has determined that taxes are owed in the following amounts 7 for the specified tax years: 8 9 10 11 12 13 14 15 16 17 Tax Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Tax Due $ 1,852.00 $ 7,145.00 $ 2,350.00 $ 157.00 $ 5.00 $ 6.00 3.00 $ $ 4.00 $ 3.00 $ 2.00 $ 2.00 $ 22.00 Total Taxes: $11,551.00 18 Plaintiff and Defendants agree that these tax amounts appear to be appropriate and should be 19 paid, per the instructions of the Damasco & Associates finn, from the funds in the court's 2 0 registry for this case. 21 As shown in the second Declaration of Jude P. Damasco, which is attached as Exhibit 2 2 2, the Damasco & Associates firm has incurred the following fees for preparing the tax returns 2 3 for each of the specified tax years: 24 25 26 27 28 Tax Year 2005 2006 2007 2008 2009 Stip. To Pay Taxes CV 04-0145-MISC. MHP Preparation Fees $1,800.00 $1,800.00 $1,800.00 $ 850.00 $ 850.00 -2- 2 3 4 2010 2011 2012 2013 2014 2015 2016 $ $ $ $ $ $ $ Total Fees: 1 850.00 850.00 850.00 850.00 850.00 850.00 850.00 $13,050.00 6 Additionally, Damasco & Associates has incurred $16.80 in costs for a total of$13,066.80 in 7 total fees and costs for preparing the necessary tax returns. Plaintiff and Defendants agree that 8 these tax administrator fees appear appropriate and should also be paid, per the instructions of 9 the Damasco & Associates firm, from the funds in the court's registry for this case. 10 At the current time, there is $29,977.28 remaining in the court's registry for this case. 11 After payment of the $11,551.00 in income taxes and $13,066.80 in tax preparation fees and 1 2 costs (for a total of$24,617.80) from the court' s registry, there will be a remaining balance of 1 3 $5,359.48 in the court's registry. This amount may be used to pay potential late fees on the 14 taxes owed and to pay additional administrative fees, with any remaining balance paid to the 15 Permanent Portfolio Fund. 16 DATED: May 17, 2017_ 17 U. S. SECURITIES AND EXCHANGE COMMISSION JohnS. Yun JohnS. Yun 18 19 Attorney for the United States Securities & Exchange Commission 20 JOHN W. COTTON GARTENBERG, GELFAND & HAYTON LLP 21 22 John W Cotton (with authorization) John W. Cotton 23 Attorneys for Terence M. Coxon and World Money Managers 24 25 26 27 28 Stip. To Pay Taxes CV 04-0145-MISC. MHP -3- 1 ORDER REGARDING PAYING TAXES AND ADMINISTRATOR FEES 2 Good cause appearing from parties' Regarding Payment oflncome Taxes and of Tax 3 Preparation Fees (the "Stipulation") and from the Declarations of Jude P. Damasco that are attached as Exhibits 1 and 2, the Court finds that it is appropriate for the Clerk of the Court to 4 5 6 7 8 9 10 release funds from the court's registry for this matter to pay income taxes and tax administrator fees. It is therefore ordered: 1. To pay income taxes, the Clerk of the Court shall promptly issue a check in the amount of$11,551.00 made payable to "Damasco & Associates, Trust Account" from the funds in the court's registry for this case and shall mail the check to Damasco & Associates c/o Miller Kaplan Arase, LLP, 314 South River Street, Suite 201, Hailey, ID 83333. The check shall also contain the notation "xx-xxx0621" as being the Employer Identification 11 Number for SEC v. Coxon Disgorgement Fund. 12 2. To pay tax administrator fees and costs, the Clerk of the Court shall promptly 13 issue a separate check in the amount of$13,066.80 made payable to "Damasco & Associates 14 LLP" from the funds in the court's registry for this case and shall mail the check to Damasco 15 & Associates LLP, 314 South River Street, Suite 201, Hailey, ID 83333. NO 20 Judge, United States District Court J u d ge J a RT 21 22 n a to 23 24 25 26 27 28 Stip. To Pay Taxes CV 04-0145-MISC. MHP -4- A H ER mes Do FO 19 V ED APPRO LI 18 R NIA S DATED: May 23 3434_ , 2017 UNIT ED 17 S DISTRICT TE C TA SO ORDERED. RT U O 16 N D IS T IC T R OF C EXHIBIT 1 II DECLARATION OF .JUDE P. DAMASCO IN SUPPORT OF REQUEST TO MAKE TAX PAYMENTS I, Jude P. Damasco, am over eighteen years of age and state the following facts which I know of my own personal knowledge. 5 1. 6 part of Miller Kaplan Arase, LLP, located at 700 Monte Vista Lane, Half Moon Bay, CA 7 940 I 9. I am a certified public accountant. 8 2. 9 Fund ("Fund") in Plaintiffs and Defendants' Stipulation and Order Regarding Disbursement of 10 Funds and Appointment of Tax Administrator, Case No. 3:04-mc-00145-MHP, filed on 11 November 30, 20 I 5. 12 .). 13 $11,551.00 in federal tax liabilities for the years 2005 through 2016. These tax payments are 14 -. I am the managing partner of Damasco & Associates LLP ("Damasco") which is now Damasco was appointed as Tax Administrator for the SEC v Coxon Disgorgement As Tax Administrator, Damasco has determined that the Fund owes a total of . due as soon as possible. :rhe breakdown is as follows: Tax Due 15 Due Date 16 FortheTax Year2005 $ 1,852.00 ASAP 17 For the Tax Year 2006 $ 7,145.00 ASAP 18 For the Tax Year 2007 $ 2,350.00 ASAP 19 For the Tax Year 2008 $ I 57.00 ASAP For the Tax Year 2009 $ 5. 00 ASAP FortheTax Year2010 $ 6.00 ASAP For the Tax Year 2011 $ 3.00 ASAP For the Tax Year 2012 $ 4.00 ASAP For the Tax Year 20 I 3 $ 3.00 ASAP $ 2.00 ASAP 20 21 22 23 24 25 FortheTax Year2014 -I- For the Tax Year 2015 $ ASAP For the Tax Year 2016 "'-$---= .0-"2=2""" 0 2 2.00 ASAP Total Tax Due: $J1,551.00 4. A check in the amount of $11 ,551.00 should be made paya ble to " Damasco & 5 Associates, Trust Account" and sent to Damasco c/o Miller Kaplan Arase, LLP, 314 South 6 River Street. Suite 201 , Hailey, ID 83333. The check should be received in our office as soon 7 as possible. 8 5. The check will be deposited into a trust account from which the tax payments will be 9 10 II 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 -2 - EXHIBIT 2 DECLARATION OF .JlJDE P. DAMASCO IN SUPPORT OF FEE REQUEST 2 I. Jude P. Damasco. am over eighteen years of age and state the following facts which I 3 4 kn O\v of my own personal knowledge . 5 1. 6 part of Miller Kaplan Arase, LLP, located at 700 Monte Vista Lane, Half Moon Bay, CA 7 94019. I am a certified public accountant. 8 2. 9 Fund ("Fund ") in Plaintiffs and Defendants' St ipulation and Order Regarding Disbursement of 10 Funds and Appointment of Tax Administratorl Case No. 3:04-mc-00 145-MHP, filed on II November 30. 2015 . 12 -'· 13 copy of our invoice for tax compliance services performed on behalf of the Fund. 14 4. 15 to the instructions Iis ted on the attached invoice. 16 17 ... I am the managing partner of Damasco & Associates LLP ("Damasco'' ) which is now Damasco was appointed as Tax Adm inistrator for the SEC v Coxon Disgorgement Pursuant to our engagement agreement with the SEC, attached is a true and correct Please remit payment in the amount of $13,066.80 via wire transfer or check according Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true and correct. Executed on May II, 2017 in HalfMoon Bay, California. 18 19 20 21 25 -1- -· [) /\ rv1 i\ s(' () ----------- · - - - ASS()(' I 1\.f'ES LLP I '"" ; f I {. I ( : Ct 5 I,J Now A Part of Miller Kaplan Arase LLP 314 S River Street, Suite 201 Hailey, 10 83333 , 1 ( "'•' , '•i 650-7 26-4100 JohnS . Yun SEC v Coxon Disgorgement Fund U.S. Secunties & Exchange Commission San Francisco Regional Office 44 Montgomery Street, Suite 2600 San Francisco, CA 94104 lnvo1ce Date 83592 3080440 05111 /2017 Due Date : 06/10/2017 10: SEC EA reference SF-00730-C SEC/DC Case Number: 3:04-mc-00145-MHP Responsible Party for Payment D1stribut1on Fund Tax Administra tor Appointment Date· 11130/2015 For professional serv,ces rendered as fo llows · DISCOUNT SERYICE mE.f RATE AMOUNT Preparation and filing of the 2005 Qualified Settlement Fund Income Tax Return. 1,800.00 Preparation and filing of the 2006 Qualified Settlement Fund Income Tax Return. Preparation and filing of the 2007 Qualified Settlement Fund Income Tax Return. Preparation and filing of the 2008 Qualified Settlement Fund Income Tax Return. 1,800.00 1,800.00 850.00 Preparation and filing of the 2009 Qualified Settlement Fund Income Tax Return. 850.00 Preparation and filing of the 2010 Qualified Settlement Fund Income Tax Return. 850.00 Preparation and filing of the 2011 Qualified Settlement Fund Income Tax Return. 850.00 Preparation and filing of the 2012 Qualified Settlement Fund Income Tax Return. 850.00 850.00 Preparation and filing of the 2013 Qualified Settlement Fund Income Tax Return. Preparation and filing of the 2014 Qualified Settlement Fund Income Tax Return. Preparation and filing of the 2015 Qualified Settlement Fund Income Tax Return. Preparation and filing of the 2016 Qualified Settlement Fund Income Tax Return. Total for Servi ces 850.00 850.00 850 .00 13,050.00 --- Charges Consulting Services - General Consulting 05/05/2017 Delivery Charge 0 000 1.40 05/05/2017 CA 2005 Tax Ret urn delivery charge. Delivery Charge 0.000 1.40 0510512017 CA 2006 Tax Return delivery charge . Delivery Charge 0.000 1 40 05/05/2017 . CA 2007 Tax Return delivery charge . Delivery Charge 0 000 1 40 05/05/2017 CA 2008 Tax Re tu rn delivery charge . Delivery Charge 0 000 1 40 05/05/2017 CA 2009 Tax Return delivery charge. Delivery Charge 0.000 1 40 05/05/2017 CA 20 10 Ta x Return deli very charge . Deli very Ct1 arge 0.000 140 Darnasco & Associates, LLP Page 2 of 2 05/05/2017 CA 2011 Tax Return delivery charge . Delivery Charge 0.000 1.40 05/05/2017 CA 2012 Tax Return delivery charge. Delivery Charge 0.000 1.40 05/05/2017 Delivery Charge 0.000 1.40 05/05/2017 CA 2014 Tax Return delivery charge . Delivery Charge 0.000 1.40 05/05/2017 CA 2015 Tax Return delivery charge . Delivery Charge 0.000 1.40 CA 2013 Tax Return delivery charge. CA 2016 Tax Return delivery charge. Total for Charges Invoice Total 16.80 $13,066.80 PLEASE REMIT PAYMENT VIA WIRE TRANSFER OR CHECK ACCORDING TO THE INSTRUCTIONS BELOW: WIRE FUNDS TO: UNION BANK 350 CALIFORNIA STREET. SUITE 1800 SAN FRANCISCO, CA 94104 ABA NUMBER PROVIDED BY EMAIL BENEFICIARY ACCOUNT NUMBER : PROVIDED BY EMAIL BENEFICIARY ACCOUNT NAME: DAMASCO & ASSOCIATES LLP OR MAKE CHECK PAYABLE TO DAMASCO & ASSOCIATES LLP 314 SOUTH RIVER STREET, SUITE 201 HAILEY, ID 83333 05/11/2017 13,066.80 04/30/2017 03/31/2017 02/28/2017 01/3 1/2 017 + Total 0 .00 0 00 0.00 0 .00 $13,066.80 ASSOCIATES LLP ACCCJUNIANCY .A.ND CONSULTING Now A Part of Miller Kaplan Arase LLP 3 14 S. Street, Suite 201 Hailey, ID 83333 650-726-4100 JohnS. Yun SEC v Coxon Disgorgernent Fund U.S. Securities & Exchange Commission San Francisco Regional Office 44 Montgomery Street, Suite 2600 San Francisco, CA 94104 Invoice : \D: Date : Due Date: 83592 3080440 05/11/2017 06/10/2017 SEC E.A. reference SF-00730-C SEC/DC Case Number: 3:04-mc-00145-MHP Responsible Party for Payment: Distribution Fund Tax Administrator Appointment Date : 11/30/2015 For professional services rendered as follows: STAFF SERVICE 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Preparation and filing of the 2016 Preparation Preparation Preparation Preparation Preparation Preparation Preparation Preparation Preparation Preparation Preparation and and and and and and and and and and and filing filing filing filing filing filing filing filing filing filing filing of the of the of the of the of the of the of the of the of the of the of the Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Qualified Settlement Settlement Settlement Settlement Settlement Settlement Settlement Settlement Settlement Settlement Settlement Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Income Income Income Income Income Income Income Income Income Income Income Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax SEC DISCOuNT RATE HOURS AMOUNT 1,800.00 1,800.00 1,800.00 850.00 Return. Return. Return . Return. Return. Return. Return. Return. Return. Return . Return. Qualified Settlement Fund Income Tax Return. Total for Services 850.00 850.00 850.00 850.00 850.00 850.00 850.00 850.00 13,050.00 Charges Consulting Services - General Consulting 05/05/2017 Delivery Charge 0.000 1.40 05/05/2017 CA 2005 Tax Return delivery charge . Delivery Charge 0.000 1.40 05/05/2017 CA 2006 Tax Return delivery charge. Delivery Charge 0.000 1.40 05/05/2017 CA 2007 Tax Return delivery charge. Delivery Charge 0.000 1.40 05/05/2017 CA 2008 Tax Return delivery charge. Delivery Charge 0.000 1.40 05/05/2017 CA 2009 Tax Return delivery charge. Delivery Charge 0.000 1.40 05/05/2017 CA 2010 Tax Return delivery charge. Delivery Charge 0.000 1.40 Damasco & Associates, LLP Page 2 of 2 05/05/2017 CA 2011 Tax Return delivery charge. Delivery Charge 0.000 140 05105/2017 CA 2012 Ta x Return delivery charge. Delivery Charge 0.000 140 05/05/2017 CA 2013 Tax Return delivery charge . Delivery Charge 0.000 140 05/05/2017 CA 2014 Tax Return delivery charge. Delivery Charge 0.000 140 05/05/2017 CA 2015 Tax Return delivery charge. Delivery Charge 0000 140 CA 2016 Tax Return delivery charge. Total for Charges Invoice Total 16.80 $13,066.80 PLEASE REMIT PAYMENT VIA WIRE TRANSFER OR CHECK. ACCORDING TO THE INSTRUCTIONS BELOW: WIRE FUNDS TO: UNION BANK 350 CALIFORNIA STREET, SUITE 1800 SAN FRANCISCO, CA 94104 ABA NUMBER: PROVIDED BY EMAIL BENEFICIARY ACCOUNT NUMBER: PROVIDED BY EMAIL BENEFICIARY ACCOUNT NAME : DAMASCO & ASSOCIATES LLP OR MAKE CHECK PAYABLE TO: DAMASCO & ASSOCIATES LLP 314 SOUTH RIVER STREET, SUITE 201 HAILEY, ID 83333 05/11/2017 13,066.80 04/30/2017 0.00 03/31/2017 0.00 02/28/2017 0.00 Q.1.!.W017+ 0.00 $13,066.80