Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_00-cv-03570/USCOURTS-cand-3_00-cv-03570-0/pdf.json

Parties Involved:
Albert Bergonzi
Defendant
Dominick Derosa
Defendant
Jay Gilbertson
Defendant
Securities and Exchange Commission
Plaintiff

Document Text:

STIPULATION AND [PROPOSED] ORDER RE DEPOSIT & 

DISTRIBUTION OF GILBERTSON PENALTY FUNDS

CASE NO. C-00-3570 SI

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MARC J. FAGEL (State Bar No. 154425) 

JUDITH L. ANDERSON (State Bar No. 124281) 

 andersonju@sec.gov 

Attorneys for Plaintiff 

SECURITIES AND EXCHANGE COMMISSION 

44 Montgomery Street, Suite 2600 

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, 

 vs. 

JAY GILBERTSON, ALBERT BERGONZI, 

DOMINICK DEROSA, 

 Defendants. 

Case No. C 00-03570 SI 

STIPULATION AND [PROPOSED] ORDER 

REGARDING DEPOSIT AND 

DISTRIBUTION OF PENALTY FUNDS 

FROM DEFENDANT JAY GILBERTSON 

 Plaintiff Securities and Exchange Commission (“Commission”) and defendant Jay Gilbertson 

(“Gilbertson”), by and through their respective counsel of record, respectfully submit this stipulation 

regarding the distribution of penalty funds paid by Gilbertson, with reference to the following facts: 

RECITALS

A. On July 1, 2003, the Court entered a Final Judgment as to Jay Gilbertson in the instant 

action. Paragraph VII of the Final Judgment provides that Gilbertson pay a civil penalty in the 

amount of $1,000,000 to be deposited into the Court and held by the Clerk in an interest bearing 

account with the Court Registry Investment System. 

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Case 3:00-cv-03570-SI Document 49 Filed 03/17/2008 Page 1 of 5 Case 3:00-cv-03570-SI Document 52 Filed 03/19/08 Page 1 of 5
STIPULATION AND [PROPOSED] ORDER RE DEPOSIT & 

DISTRIBUTION OF GILBERTSON PENALTY FUNDS

CASE NO. C-00-3570 SI

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B. Gilbertson’s counsel represents that funds in the amount of $1,000,000 were 

deposited, pursuant to an agreement with the Commission, in a client trust account at the law firm 

Paul Hastings Janofsky & Walker LLP, and that the funds are currently held in that account. 

C. The Judgment provides that the United States Attorney or the Commission may, by 

motion, “propose a plan to distribute the Fund [the penalty amount together with any interest and 

income earned] subject to court approval” and that such a plan “may provide that Fund shall be 

distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 

2002.” In lieu of a motion, the Commission and Gilbertson submit this stipulation. 

D. The parties wish to have the penalty funds held by counsel distributed pursuant to 

Section 308(a) of the Sarbanes-Oxley Act for the benefit of the victims of the securities fraud 

violations alleged against Gilbertson by the Commission.1 The parties are informed and believe that 

the list of victims is voluminous and that it would be too costly for the Clerk’s Office to develop such 

a list and prepare and mail checks to the victims. In addition, as described in paragraphs F-G below, 

an established means exists to distribute these funds. 

E. Counsel for the Commission has consulted with plaintiffs’ class counsel in the 

proceeding In re McKesson HBOC Securities Litigation, U.S. District Court, Northern District of 

California, San Jose Division, C99-20743 RMW (the “Securities Case”). On February 24, 2006, 

Judge Whyte of this Court entered an Order Approving Plan of Allocation, setting the terms by which 

the proceeds of litigation would be awarded to class members in the Securities Case. 

F. Counsel for the Commission has determined that the most efficient means of 

distributing the funds identified in paragraphs A-B above is to have those funds deposited with the 

Clerk’s Registry (as the Judgment provides) and then have the Clerk of the Court pay those sums 

over to the party handling claims distributions in the Securities Case, Analytics, Inc. (the “Claims 

Administrator”). 

1 On March 6, 2008, the Honorable Martin J. Jenkins issued an order in United States v. Gilbertson,

No. CR-00-00505-2 MJJ, providing that $4,020,284.22 paid in restitution by defendant Gilbertson 

would be treated in the same fashion as the parties request for treatment of the penalty funds 

identified herein. 

Case 3:00-cv-03570-SI Document 49 Filed 03/17/2008 Page 2 of 5 Case 3:00-cv-03570-SI Document 52 Filed 03/19/08 Page 2 of 5
STIPULATION AND [PROPOSED] ORDER RE DEPOSIT & 

DISTRIBUTION OF GILBERTSON PENALTY FUNDS

CASE NO. C-00-3570 SI

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G. The Claims Administrator has requested, however, that the funds only be sent to the 

Claims Administrator at a time very close to distribution for tax reasons. Class counsel has advised 

that the next distribution is expected to take place near the end of April or in early May 2008. 

STIPULATION

THEREFORE, THE PARTIES AGREE AND STIPULATE, subject to the Court’s approval, 

as follows: 

1. The law firm Paul Hastings Janofsky & Walker LLP is directed to pay to the Clerk of 

the Court the sum $1,000,000 within five (5) days of the entry of the Order approving this stipulation. 

Funds should be remitted via overnight courier to the Clerk of the United States District Court, 

450 Golden Gate Avenue, 16th Floor, Room 11, San Francisco, CA 94102, and the reference line 

should read Case No. C 00-03570 SI (Gilbertson). A copy of the Court’s Order shall be submitted 

with the payment. 

2. The Clerk of the Court is directed to accept the $1,000,000 and to deposit that sum in 

the Clerk’s Registry. 

3. Counsel for the Commission will notify the Clerk of the Court when the time comes to 

forward the funds held in the Clerk’s Registry to the Claims Administrator. 

4. Upon written notification from Counsel for the Commission, the Clerk shall pay the 

funds in the Clerk’s registry, plus any interest earned on those funds, to the Claims Administrator. 

The Claims Administrator’s name and address is: 

Analytics Incorporated, Claims Administrator 

18750 Lake Drive East 

Chanhassen, MN 55317 

Case 3:00-cv-03570-SI Document 49 Filed 03/17/2008 Page 3 of 5 Case 3:00-cv-03570-SI Document 52 Filed 03/19/08 Page 3 of 5
STIPULATION AND [PROPOSED] ORDER RE DEPOSIT & 

DISTRIBUTION OF GILBERTSON PENALTY FUNDS

CASE NO. C-00-3570 SI

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5. The Claims Administrator is directed to pay the sums received from the Clerk of the 

Court to the Authorized Claimants, consistent with the terms of the Plan of Allocation approved by 

Judge Whyte of the District Court on February 24, 2006. 

Dated: March 17, 2008 /s/ Judith L. Anderson__________

Marc J. Fagel 

Judith L. Anderson 

Attorneys for Plaintiff 

SECURITIES AND EXCHANGE COMMISSION 

Dated: March 17, 2008 MCGUIREWOODS LLP 

/s/ Robert Plotkin __________

Robert Plotkin 

Attorneys for Defendant JAY GILBERTSON 

 I, Judith L. Anderson, attest that Robert Plotkin has read and approved the Stipulation and 

[Proposed] Order Regarding Deposit And Distribution Of Penalty Funds From Defendant Jay 

Gilbertson and consents to its filing in this action. 

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STIPULATION AND [PROPOSED] ORDER RE DEPOSIT & 

DISTRIBUTION OF GILBERTSON PENALTY FUNDS

CASE NO. C-00-3570 SI

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ORDER

The Court, having reviewed the above Stipulation Regarding Deposit and Distribution of 

Penalty Funds, and good cause appearing, hereby APPROVES the Stipulation, and orders: 

1. The law firm Paul Hastings Janofsky & Walker LLP is directed to pay to the Clerk of 

the Court the sum $1,000,000 within five (5) days of the entry of the Order approving this stipulation. 

Funds should be remitted via overnight courier to the Clerk of the United States District Court, 

450 Golden Gate Avenue, 16th Floor, Room 11, San Francisco, CA 94102, and the reference line 

should read Case No. C 00-03570 SI (Gilbertson). A copy of the Court’s Order shall be submitted 

with the payment. 

2. The Clerk of the Court is directed to accept the $1,000,000 and to deposit that sum in 

the Clerk’s Registry. 

3. Counsel for the Commission will notify the Clerk of the Court when the time comes to 

forward the funds held in the Clerk’s Registry to the Claims Administrator. 

4. Upon written notification from Counsel for the Commission, the Clerk shall pay the 

funds in the Clerk’s registry, plus any interest earned on those funds, to the Claims Administrator. 

The Claims Administrator’s name and address is: 

Analytics Incorporated, Claims Administrator 

18750 Lake Drive East 

Chanhassen, MN 55317 

5. The Claims Administrator is directed to pay the sums received from the Clerk of the 

Court to the Authorized Claimants, consistent with the terms of the Plan of Allocation approved by 

Judge Whyte of the District Court on February 24, 2006. 

IT IS SO ORDERED. 

DATED: _________________ ___________________________________ 

 UNITED STATES DISTRICT JUDGE 

Case 3:00-cv-03570-SI Document 49 Filed 03/17/2008 Page 5 of 5

3/18/08

Case 3:00-cv-03570-SI Document 52 Filed 03/19/08 Page 5 of 5