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U.S. District Court

United States District Court for the Southern District of New York (Foley
Square)
CIVIL DOCKET FOR CASE #: 1:92-cv-08314-JES

Securities & Exchang, et al v. Avellino & Bienes, et al

Assigned to: Judge John E. Sprizzo
Demand: $0
Cause: 15:78m(a) Securities Exchange Act
Date Filed: 11/25/1992
Date Terminated: 09/07/1993
Jury Demand: None
Nature of Suit: 850 Securities/Commodities
Jurisdiction: U.S. Government Plaintiff
Plaintiff
A, B and C
TERMINATED: 11/25/1992

Plaintiff
Securities and Exchange Commission represented byRichard H. Walker
7 World Trade Center, 12th Floor
New York , NY 10048
(212) 748-8097
LEAD ATTORNEY

V.

Defendant
D, E and F
TERMINATED: 11/25/1992

Defendant
Avellino & Bienes represented byIra Lee Sorkin
Carter Ledyard & Milburn LLP
2 Wall Street
New York , NY 10005
212 896 3710
Fax: 212 997 9880
Email: sorkini@dsmo.com
LEAD ATTORNEY

Defendant
Frank J. Avellino represented byIra Lee Sorkin
(See above for address)
LEAD ATTORNEY

Defendant
Michael S. Bienes represented byIra Lee Sorkin
(See above for address)
LEAD ATTORNEY

Date Filed#Docket Text

11/18/19921 ORDER, sealing case ( signed by Judge Kenneth Conboy ); Copies

mailed (la) (Entered: 11/19/1992)

11/18/19922 Case information Statement Addendum filed. Purs. to statement,

it is suggested that the case be classified as Unknown at this time. (la)
(Entered: 11/19/1992)

11/18/19925 SEALED DOCUMENT placed in vault per order of KC dtd. 11/17/92

(mk) (Entered: 12/01/1992)

11/24/19926 SEALED DOCUMENT placed in vault per order of JES dtd. 11/23/92
(mk) (Entered: 12/01/1992)

11/25/19923 ORDER, for preliminary injunction enjoining defts, their

agents, etc. from directly or indirectly, singly or in concert, violating
Section 5(a) of the Sec. Act (15 USC 77e(a), etcc...; Lee S. Richards of
the law firm Richards Spears Ribbe & Orbe, be appointed Trustee , and all
papers fld. with the the Court shall be fld. in sealed envelopes,
indicating the words "Confidential Information", etc.; The Clerk shall
remove the seal from such papers on 11-25-92, unless otherwise directed by
the Court... SO ORDERED, CONBOY, J. (Part I) (from Sealed envelope #1) (
signed by Judge Kenneth Conboy ) (mk) Modified on 11/30/1992 (Entered:
11/30/1992)

11/25/19924 COMPLAINT filed; Summons issued and Notice pursuant to 28

U.S.C. 636(c); JURY TRIAL DEMANDED (from sealed Envelope #1) (mk) Modified
on 11/30/1992 (Entered: 11/30/1992)

11/25/19928 STIPULATION and AMNEDMENT TO ORDER, that the order is amended

insofar as it requires redemption to the following accounts numbered... ,
and the Trustee shall establish an interes-bearing acct. into which he
shall deposit the funds in the above accts. until such time as, in the
Trustee's jgmt, no court order or other assignment or attachment, or legal
process prevents the transfer of such funds... SO ORDERED, SPRIZZO, J.
(from sealed envelope #2) ( signed by Judge John E. Sprizzo ). (mk)
(Entered: 12/02/1992)

12/01/19927 SECOND STIPULATION and AMENDMENT TO ORDER, that the Order is

amended insofar as it requires redemption of the following acconts
numbered... , and the Trustee shall establish an interest-bearing acct.
into which he shall deposit the funds in the above accts until such time
as, in the Trustee's jgmt, the funds should be distributed ( signed by
Judge John E. Sprizzo ). (mk) Modified on 12/01/1992 (Entered: 12/01/1992)

12/21/19929 NOTICE of change of address by Richard H. Walker, Regional

Administrator, attorney for Securities and Exchange Commission. New
Address: 7 World Trade Center, 12th Floor, New York N.Y. 10048. Tel: (212)
748-8097. (jr) (Entered: 12/22/1992)

12/30/199210 STIPULATION and ORDER, extending time for Price Waterhouse to

submit a report on its findings to January 15, 1993 ( signed by Judge John
E. Sprizzo ). (jr) (Entered: 12/30/1992)

01/06/199311 ANSWER to Complaint by Avellino & Bienes, Frank J. Avellino,

Michael S. Bienes (Attorney Ira Lee Sorkin), ; Firm of: Squadron Ellenoff
Plesent Sheinfeld & Sorkin by attorney Ira Lee Sorkin for defendant
Michael S. Bienes (jr) (Entered: 01/06/1993)

01/14/199312 STIPULATION and ORDER, to amend paragraph IV C of the order

dated November 17, 1992 to extend the time to January 19, 1993 for Price
Waterhouse to submit a report on its findings ( signed by Judge John E.
Sprizzo ). (jr) (Entered: 01/15/1993)

01/21/199315 ORDER, for Kathryn A. Ashbaugh, Esq. to appear pro hac vice
for plaintiff, Securities and Exchange Commission ( signed by Judge John
E. Sprizzo ); Copies mailed (jr) (Entered: 01/25/1993)

01/25/199313 STIPULATION and ORDER, that the $317,654.00 relating to a

claim made by Telfran Associates should remain in the Chemical Bank
Account of Avellino & Bienes No. 611120216 until the Trustee determines
that, in his judgment, the funds should be disbursed, etc.. , and
extending time for Price Waterhouse to file its report with the Court to
January 28, 1993 at 5:00 p.m. ( signed by Judge John E. Sprizzo ). (jr)
(Entered: 01/25/1993)

01/25/199314 ORDER, the Price Waterhouse audit shall be completed on or

before January 24, 1993 at 6:00 p.m. , and the Trustee shall file an
application for fees on or before 2/22/93 with defendant's response set
for 2/5/93 , and set pretrial conference for 1:00 3/5/93 ( signed by Judge
John E. Sprizzo ); Copies mailed (jr) (Entered: 01/25/1993)

02/09/199316 STIPULATION and ORDER, extending time for Price Waterhouse

and the Trustee to file fee applications to February 19, 1993 ( signed by
Judge John E. Sprizzo ). (jr) (Entered: 02/10/1993)

02/19/199317 STIPULATION and ORDER, extending time for Price and the
Trustee to tile the fee applications to 2/26/93 and extending the time for
defendants to file their response to such fee applications to 3/12/93 (
signed by Judge John E. Sprizzo ). (jr) (Entered: 02/22/1993)

02/26/199318 NOTICE OF MOTION by Avellino & Bienes, Frank J. Avellino,

Michael S. Bienes for an order approving the payment of fees, costs and
expenses of the Trustee and Price Waterhouse for November 1192 through
January 1993 (pursuant to Paragraph IV B.8 of the November 17, 1992
Consent Order , and and for an order ordering Frank J. Avellino and
Michael S. Bienes to pay any amount in excess of the $250,000 set aside
pursuant to the Order , Return date 3/19/93 (jr) (Entered: 02/26/1993)

02/26/199319 AFFIDAVIT in support of Frederick M. Werblow by Avellino &

Bienes, Frank J. Avellino, Michael S. Bienes Re: [18-1] motion for an
order approving the payment of fees, costs and expenses of the Trustee and
Price Waterhouse for November 1192 through January 1993 (pursuant to
Paragraph IV B.8 of the November 17, 1992 Consent Order, [18-2] motion and
for an order ordering Frank J. Avellino and Michael S. Bienes to pay any
amount in excess of the $250,000 set aside pursuant to the Order (jr)
(Entered: 02/26/1993)

02/26/199320 AFFIDAVIT in support of Lee S. Richards, III by Avellino &

Bienes, Frank J. Avellino, Michael S. Bienes Re: [18-1] motion for an
order approving the payment of fees, costs and expenses of the Trustee and
Price Waterhouse for November 1192 through January 1993 (pursuant to
Paragraph IV B.8 of the November 17, 1992 Consent Order, [18-2] motion and
for an order ordering Frank J. Avellino and Michael S. Bienes to pay any
amount in excess of the $250,000 set aside pursuant to the Order (jr)
(Entered: 02/26/1993)

03/12/199321 ORDER, set discovery due for 6/4/93 , and set motion for fees
 by the Trusteefiling deadline for 3/16/93 , and Response to motion for
fees set for 3/26/93 , and Motion hearing set for 4/16/93 at 1:00 , and
set pretrial conference for 10:30 6/11/93 ( signed by Judge John E.
Sprizzo ); Copies mailed (jr) (Entered: 03/12/1993)

03/15/199322 AFFIDAVIT in opposition of Ira Lee Sorkin by Avellino &

Bienes, Frank J. Avellino, Michael S. Bienes Re: Payment of accountants'
fees in the amount of $428,679 submitted by Price Waterhouse. Exhibits
attached. (jr) (Entered: 03/15/1993)

03/19/199323 Transcript of record of proceedings filed for dates of

11/24/92 (rag) (Entered: 03/22/1993)

03/26/199324 Transcript of record of proceedings filed for dates of

January 19, 1993 (jr) (Entered: 03/26/1993)

04/12/199325 REPLY by Securities & Exchange Commission in opposition Re:

Defendants' affidavits in opposition to Price Waterhouse's fee
application. (Night Deposit on 4/12/93 at 6:50 p.m.). (jr) Modified on

04/13/1993 (Entered: 04/13/1993)

04/19/199326 SUPPLEMENTAL AFFIDAVIT in support of Lee S. Richards, III Re:

[18-1] motion for an order approving the payment of fees, costs and
expenses of the Trustee and Price Waterhouse for November 1192 through
January 1993 (pursuant to Paragraph IV B.8 of the November 17, 1992
Consent Order, [18-2] motion and for an order ordering Frank J. Avellino
and Michael S. Bienes to pay any amount in excess of the $250,000 set
aside pursuant to the Order (jr) (Entered: 04/20/1993)

04/19/199327 REPLY AFFIDAVIT of Lee S. Richards, III in opposition to

[22-1] affidavit (jr) (Entered: 04/20/1993)

04/22/199328 NOTICE of Change of Address of counsel for Trustee. (sc)

(Entered: 04/22/1993)

05/04/199329 ORDER granting [18-1] motion for an order approving the

payment of fees, costs and expenses of the Trustee and Price Waterhouse
for November 1192 through January 1993 (pursuant to Paragraph IV B.8 of
the November 17, 1992 Consent Order. and The Trustee's application and
supplemental application for a total of $97,799 in fees and a total of
$15,288 in expenses (a total of $113,087) are hereby granted in their
entirety. Price Waterhouse's application for fees in the amount of
$414,902 and expenses of $13,777 (a total of $428,679) is hereby granted
in its entirety ( signed by Judge John E. Sprizzo ); Copies mailed (jr)
(Entered: 05/04/1993)

05/10/199330 REPLY AFFIDAVIT of Joel Whitman by Price Waterhouse re: To

correct numerous erroneous statements in the A&B affidavits of March 12,
1993 and in further of application for fees and expenses. (jr) (Entered:
05/10/1993)

06/28/199331 Order of dismissal without prejudice to either party to apply

on five days' notice for its restoration to the trial calendar of this
Court, if said settlement is not consummated ( signed by Judge John E.
Sprizzo ) (jr) (Entered: 06/29/1993)

06/28/1993 Case closed (jr) (Entered: 06/29/1993)

08/25/199332 Transcript of record of proceedings filed for dates of

4/21/93 (ys) (Entered: 08/25/1993)

08/25/199333 STIPULATION and ORDER, restoring the action to the trial

calendar of this court , and set pretrial conference for 1:00 11/19/93 (
signed by Judge John E. Sprizzo ). (jr) (Entered: 08/27/1993)

08/25/1993 Case reopened (jr) (Entered: 08/27/1993)

09/07/199334 CONSENT JUDGMENT # 93,2049 for Securities & Exchange

Commission for permanent injunction against Avellino & Bienes, Frank J.
Avellino, Michael S. Bienes. Defendants shall each pay to the United
States Treasury a civil penalty in the amount of $250,000.00 for A&B,
$50,000.00 for Avellino, and $50,000.00 for Bienes, these amount to be
paid within ten business days of the entry of this Final Judgment ( signed
by Judge John E. Sprizzo ) E.O.D. 9/9/93 (jr) (Entered: 09/09/1993)

09/07/1993 Case closed (jr) (Entered: 09/09/1993)

01/12/199535 SATISFACTION OF JUDGMENT Re: [34-1] judgment order in the

amount of $350,000; Judgment satisfed on 1/11/95. (emil) (Entered:

01/17/1995)

01/13/199536 ACKNOWLEDGEMENT OF SERVICE of Final Judgment and Permanent

Injunction as to Avellino & Bienes, Frank J. Avellino, Michael S. Bienes
by Dori Ann Hanswirth on 1/10/95 (emil) (Entered: 01/17/1995)