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# Other

# In the Matter of Bankrate, Inc. Admin. Proc. File No. 3-16786

                            Aug. 29, 2022                       

                                - In the Matter of Hyunjin Lerner, CPA  	Admin. Proc. File No. 3-16787  	 
                                - SEC v. Edward DiMaria, et al.  	Case No. 15-cv-07035-GHW (S.D.N.Y.)

On September 8, 2015, the Commission instituted and simultaneously settled separate cease-and desist-proceedings against Bankrate, Inc. (“Bankrate”) and Hyunjin Lerner (“Lerner”) (collectively, the “Respondents”). The Commission found that, during the second quarter of 2012, the Respondents violated federal securities laws by intentionally manipulating Bankrate’s financial results in order to meet and/or exceed analyst consensus estimates for key financial metrics. The Commission ordered, and the Respondents have paid, a total of $15,182,616.00 in disgorgement, prejudgment interest, and civil money penalties. *See* the Commission’s orders: Release Nos. 33-9901and 33-9902. 

The Respondents have paid a total of $15,182,616.00 for the distribution to harmed investors (“Distribution Fund”).

On May 26, 2016, the Commission issued an order appointing Damasco & Associates LLP (“Damasco”) as the Tax Administrator of the Distribution Fund. Damasco was acquired by Miller Kaplan Arase LLP and on June 30, 2017, the Commission issued a notice of name change for the Tax Administrator.

On May 8, 2017, the Commission issued an order establishing a Fair Fund for the $15,182,616.00 in disgorgement, prejudgment interest, and penalties paid by the Respondents. *See* the Commission’s order:  Release No. 34-80626. 

On August 16, 2017, in a related district court action that was filed on September 9, 2015, the Commission settled charges against the two senior-most financial officials who orchestrated and executed Bankrate’s scheme, Edward DiMaria and Matthew Gamsey (collectively, the “Defendants”).  *See* Complaint. The Court ordered, and the Defendants have paid, a total of $281,158.56 in disgorgement, prejudgment interest, and civil penalties to the Commission. In each of their final judgments, the Court created Fair Funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for the monies paid by the Defendants. The Court further ordered for the funds to be combined with the Fair Fund established in, *In the Matter of Bankrate, Inc.*, and to be distributed pursuant to a plan of distribution to be approved by the Commission. *See *DiMaria’s Final Judgment and Gamsey’s Final Judgment. 

On January 18, 2018, the Commission issued an order appointing JND Legal Administration as the Fund Administrator of the Fair Fund, and set the administrator’s bond at $15,182,616. *See* the Commission’s Order: Release No. 34-82535. 

On August 28, 2020, the Commission published a notice of proposed plan of distribution and opportunity to comment and simultaneously posted the proposed plan of distribution (the “Proposed Plan”). See the Commission’s Notice: Release No. 34-89711.

No comments were received on the Proposed Plan, and on October 15, 2020, the Commission issued an order approving the Proposed Plan and simultaneously posting the approved Plan of Distribution (the “Plan”). See the Commission’s Order: Release No. 34-90188 and the Plan.

The Plan provides for the distribution of the Net Available Fair Fund to investors injured as a result of the Respondents’ conduct as calculated by the methodology described in the Plan of Allocation (Exhibit B) of the Plan.

On May 25, 2022, the Commission issued an order approving the disbursement of $15,418,912.17 from the Fair Fund for distribution to eligible investors. *See* the Commission’s Order: Release No. 34-94979.

For more information, please contact the Fund Administrator:

JND Legal AdministrationTelephone Number: (888) 921-0721Email: info@BankrateFairFund.comWebsite: www.bankratefairfund.com

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