Securities and Exchange Commission v. Braverman Update

This post is a continuation of a series of posts tracking SEC v. Braverman, 14CV7482–RMB, (S.D.N.Y.).

On September 16, 2014, the United States District Court for the Southern District of New York entered an order temporarily freezing Dimitry Braverman and Vitaly Pupynin’s assets (the “Order”) in connection to a suit brought by the Securities and Exchange Commission (“SEC”).   The SEC alleged Braverman and Pupynin committed fraud and violated the securities laws.

The United States Attorney’s Office for the Southern District of New York also brought criminal charges against Braverman for alleged insider trading. On November 13, 2014, Braverman pleaded guilty to one count of securities fraud in the criminal case. Braverman’s sentencing is scheduled for March 6, 2015, but his counsel sought an extension for May 2015. The Government has stipulated to the extension, and both parties await the courts ruling in the criminal case. 

On November 19, Braverman and the SEC submitted a third Stipulation and Proposed Order to the court to request new briefing dates in connection with the Order. The parties made this request for an adjournment because of discussions between Braverman and the SEC about potential resolution of the SEC charges. The court entered the Stipulation and Proposed Order extending the parties time to respond to the Order due to the potential for a resolution to narrow or eliminate future litigation related to the asset freeze. The Order remains in effect pending a hearing on the SEC’s Application for the asset freeze. The next hearing is set for February 19, 2015.

The primary materials for this case may be found on the DU Corporate Governance website.