Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_09-cv-01880/USCOURTS-cand-3_09-cv-01880-19/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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SEC V. KARA, ET AL. 1 JOINT STATUS REPORT

CASE NO. 3:09-CV-1880-EMC AND UPDATED CMC STATEMENT

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JINA L. CHOI (N.Y. Bar No. 154425)

ERIN E. SCHNEIDER (Cal. Bar No. 216114) 

ROBERT L. TASHJIAN (Cal. Bar No. 191007) 

tashjianr@sec.gov

Attorneys for Plaintiff

SECURITIES AND EXCHANGE COMMISSION

44 Montgomery Street, 28th Floor

San Francisco, California 94104

Telephone: (415) 705-2500

Facsimile: (415) 705-2501

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

SECURITIES AND EXCHANGE 

COMMISSION,

Plaintiff,

v.

MAHER F. KARA, MICHAEL F. KARA, 

BASSAM Y. SALMAN, and 

KARIM I. BAYYOUK,

Defendants.

Case No. 3:09-cv-1880-EMC

JOINT STATUS REPORT AND 

UPDATED CASE MANAGEMENT 

CONFERENCE STATEMENT

Further Case Management Conference:

June 11, 2015, 10:30 a.m.

Honorable Edward M. Chen

Courtroom 5, 17th Floor

This matter is currently set for a Further Case Management Conference on June 11, 2015. 

The parties submit this Joint Status Report and Updated Case Management Conference 

Statement to update the Court on the status of the proceedings in this civil case. The defendants 

remaining in this action were also charged in related criminal cases before this Court. 

BACKGROUND

A jury returned a guilty verdict regarding the charges against defendant Bassam Salman 

on September 30, 2013. See United States v. Bassam Yacoub Salman, Case No. 11-CR-625 

Case 3:09-cv-01880-EMC Document 136 Filed 06/08/15 Page 1 of 3
SEC V. KARA, ET AL. 2 JOINT STATUS REPORT

CASE NO. 3:09-CV-1880-EMC AND UPDATED CMC STATEMENT

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EMC. The Court imposed a criminal sentence regarding Mr. Salman on April 9, 2014. Mr. 

Salman is appealing the verdict to the Ninth Circuit Court of Appeals.

A jury returned a guilty verdict regarding the charge against defendant Karim Bayyouk 

on September 3, 2013. See United States v. Karim Iskander Bayyouk, Case No. 12-CR-420 

EMC. The Court imposed a criminal sentence regarding Mr. Bayyouk on April 15, 2014. 

Mr. Bayyouk is appealing the verdict to the Ninth Circuit Court of Appeals.

Defendant Michael Kara pleaded guilty to two counts and was sentenced by the Court on 

December 12, 2014. See United States v. Mounir Fayez Kara, Case No. 12-CR-417 EMC. The 

defendant and the government stipulated to an amount of restitution, which the Court approved 

on April 27, 2015. The Court entered an amended judgment on April 29, 2015.

Defendant Maher Kara also pleaded guilty to two counts and was sentenced by the Court 

on December 23, 2014. See United States v. Maher Fayez Kara, Case No. 12-CR-417 EMC.

STATUS

Counsel for the Commission and counsel for Mr. Salman and Mr. Bayyouk have reached 

an agreement in principle to resolve the pending civil claims against both defendants. 

Commission staff is in the process of recommending the proposed resolutions to the 

Commission. The staff anticipates that the Commission will consider the staff’s 

recommendation within the next four weeks. Commission approval of the two proposed 

settlements would completely resolve the pending action against Mr. Salman and Mr. Bayyouk, 

subject to the Court’s ultimate approval and entry of final judgment.

Counsel for the Commission and counsel for Maher Kara have also reached an agreement 

in principle. Commission staff intends to recommend the proposed resolution to the 

Commission, a process that would take approximately six to eight weeks. 

Commission counsel and counsel for Michael Kara have begun to discuss a resolution 

now that the Court has entered an amended judgment in his criminal matter. Any agreement in 

principle to resolve the Commission’s claims would likely be considered by the Commission at 

the same time it considers the proposed resolution with defendant Maher Kara. 

Case 3:09-cv-01880-EMC Document 136 Filed 06/08/15 Page 2 of 3
SEC V. KARA, ET AL. 3 JOINT STATUS REPORT

CASE NO. 3:09-CV-1880-EMC AND UPDATED CMC STATEMENT

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REQUEST

In light of the current status, the parties would propose that the Court set a further Case 

Management Conference in August 2015.

Dated: June 4, 2015 Respectfully submitted,

/s/ Robert L. Tashjian

ROBERT L. TASHJIAN

Attorney for Plaintiff

SECURITIES AND EXCHANGE COMMISSION

/s/ George C. Harris

GEORGE C. HARRIS

JUSTIN D. HOOGS

Morrison & Foerster LLP

Attorneys for Defendant MAHER KARA

/s/ Ismail Ramsey

ISMAIL RAMSEY

Ramsey & Ehrlich LLP

Attorneys for Defendant MICHAEL F. KARA

/s/ Patrick W. Blegen

PATRICK W. BLEGEN

Attorneys for Defendant BASSAM Y. SALMAN

/s/ Brian H. Getz

BRIAN H. GETZ

Attorneys for Defendant KARIM I. BAYYOUK

In accordance with Civil L.R. 5-1, each of the signatories to this document has concurred 

in its filing, and I shall maintain records to support these concurrences.

/s/ Robert L. Tashjian

ROBERT L. TASHJIAN

IT IS SO ORDERED that the further CMC 

is reset for 8/27/15 at 10:30 a.m. An 

updated joint CMC statement shall be 

filed by 8/20/15. 

_______________________________ 

Edward M. Chen 

U.S. District Judge 

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

AS MODIFIED

Judge Edward M. Chen

Case 3:09-cv-01880-EMC Document 136 Filed 06/08/15 Page 3 of 3