Puda Coal Inc PUDA

$250,000,000

[coldheat]

District Court Enters $250 Million Default Judgment Against Former Company Executives in Puda Coal Fraud The Commission announced today that the U.S. District Court for the Southern District of New York entered final judgments by default against defendants Ming Zhao (Zhao), the Chairman of Puda Coal, Inc. (Puda) and Liping Zhu (Zhu), Puda's former CEO. Both defendants are Chinese nationals. In addition to ordering permanent injunctions against future antifraud and related violations, the Court ordered both defendants to disgorge, jointly and severally, $116,000,000, along with prejudgment interest of $17,582,250.84. Zhao was also ordered to disgorge an additional $33,471.50 representing his additional ill-gotten gains, along with prejudgment interest thereon in the amount of $5,224.71, and to pay a penalty of $116,000,000. Zhu was also ordered to disgorge an additional $108,248 representing his additional ill-gotten gains, along with prejudgment interest thereon in the amount of $16,264.73, and to pay a penalty of $1,200,000. All told, the Court ordered over $250 million in disgorgement and civil penalties for the defendants' securities law violations. In addition, the Court permanently prohibited both defendants from serving as an officer or director of any public issuer.

[maak]

coldheat/mad... I guess this means with 30 million shares out, we should be looking at about $8.00 per share, eh??? lol... I will not be holding my breath... lol  Thanks for keeping us updated...

[coldheat]

Ha! First laugh I have had today! Right you are.....Don't hold your breath.

[talcino]

(1) "... with 30 million shares out, we should be looking at about $8.00 per share, ..." But this money (if we get it) will be distributed only to the shares that were purchased during the "class period", am I right? (2) Mad, what do you guess are the chances these two people will pay (willingness and cabability) (3) On this past Thursady, PUDA price was closed at 0.01

[coldheat]

Talcino, unless there has been a drastic change of fortune regarding Zhao's finances, I think there is zero chance of any recovery from him. To my knowledge, and I did see the trading, there is nothing public that would explain it, other than past moves of that same nature and price. Far as I know, all they will collect is the already agreed upon disgorgement to the SEC by Macquarie..the

[talcino]

What's the next step the court may take?

[coldheat]

Next step? Well, this is the SEC case and it will probably continue to monitor and manage the Macquarie distribution. Other than that it is pretty much completed. The Puda case still has a number of issues relating to what is now a appeal by released defendants for damages. There are only the two Board members who have yet to have a judgment so that needs to be cleaned up. Not sure what that