SEC v. Vladislav Steven Zubkis, No. LR-18285, Southern District of New York (Aug. 13, 2003) — Press Release
raw: Vladislav Steven Zubkis
Vladislav Steven Zubkis, No. LR-18285 (S.D.N.Y. Aug. 13, 2003)
Vladislav Steven Zubkis was ordered to disgorge $21.6 million for orchestrating a multi-year securities fraud scheme using boiler-room tactics, and the SEC seized his 75-foot luxury yacht in San Diego to enforce the unpaid judgment after he failed to pay and continued violating court orders.
The SEC obtained a $21,578,731 disgorgement judgment against Vladislav Steven Zubkis for orchestrating a multi-year securities fraud scheme using boiler-room techniques and other egregious violations. On August 11, 2003, a federal judge issued an emergency order without notice to Zubkis, authorizing the seizure of his 75-foot luxury yacht in San Diego and the freezing of escrow accounts believed to be his property. The U.S. Marshal’s Service executed the seizure the next day, and Zubkis was also permanently barred from serving as an officer or director of any public company for willfully failing to comply with the judgment.
Vladislav Steven Zubkis was found liable for orchestrating a multi-year securities fraud scheme through boiler-room stock sales and other egregious violations, netting him millions in illicit gains. In a prior ruling, a federal judge ordered him to disgorge $21,578,731 and permanently barred him from serving as an officer or director of any public company. On August 11, 2003, without notice to Zubkis, Judge John G. Koeltl issued an emergency order finding that Zubkis had failed to pay any portion of the disgorgement and was still acting as a corporate officer, thus violating the judgment. The next day, the U.S. Marshal’s Service seized his 75-foot luxury yacht in San Diego and froze escrow accounts believed to be owned by Zubkis. The yacht and accounts are now held by a court-appointed receiver pending a final determination on whether to sell them to satisfy the judgment. The court noted that this was not Zubkis’s first securities violation and characterized his conduct as repeated and egregious. The SEC’s actions underscored its commitment to enforcing disgorgement orders through asset seizure when defendants evade financial penalties.
Extracted insights
- $21.58M $21,578,731 $10M–$100M
- $21.58M $21,578,731 $10M–$100M
- $21.00M $21 MILLION $10M–$100M
- $21.00M $21 million $10M–$100M
- person judge koeltl
- company zubkis from serving as an officer and director of a public company
- scheme_term zubkis liable for orchestrating a complex securities fraud scheme
- SEC Obtains Seizure of luxury yacht
- SEC Enforce $21 million judgment against defendant Vladislav Steven Zubkis
- United States Marshal's Service Seize 75-foot luxury yacht in San Diego, California
- Commission Obtain Emergency order from Federal District Judge John G. Koeltl in New York
- Commission Turn over Yacht to a court-appointed receiver
- Receiver Hold Yacht in San Diego, pending a final determination by the Court
- Judge Koeltl Hold Zubkis liable for orchestrating a complex securities fraud scheme
- Court Order Zubkis to disgorge $21,578,731 in his illicit gains from the scheme
- Court Permanently bar Zubkis from serving as an officer and director of a public company
- Judge Koeltl Find Zubkis violated the [disgorgement] Judgment by failing to pay any portion of the $21,578,731.39 ordered disgorgement
- Judge Koeltl Find Zubkis is the legal or equitable owner of the Yacht
- Judge Koeltl Freeze Certain "escrow accounts" believed to be owned by Zubkis
Litigation Release No. 18285 / August 13, 2003 SEC OBTAINS SEIZURE OF LUXURY YACHT TO ENFORCE $21 MILLION JUDGMENT AGAINST DEFENDANT VLADISLAV STEVEN ZUBKIS SECURITIES AND EXCHANGE COMMISSION v. VLADISLAV STEVEN ZUBKIS, 97 Civ. 8086 (S.D.N.Y.) The Securities and Exchange Commission announced today that, on August 12, 2003, the United States Marshal's Service seized a 75-foot luxury yacht in San Diego, California, believed to belong to defendant Vladislav Steven Zubkis, as part of the Commission's efforts to enforce a $21 million securities fraud judgment against Zubkis. On August 11, the Commission obtained an emergency order from Federal District Judge John G. Koeltl in New York, without notice to Zubkis, to seize the yacht and turn it over to a court-appointed receiver before Zubkis could remove it from United States waters. The receiver is currently holding the yacht in San Diego, pending a final determination by the Court regarding whether to permit the receiver to sell the yacht and apply the sale proceeds toward satisfaction of the Commission's judgment against Zubkis. Judge Koeltl previously held Zubkis liable for orchestrating a complex securities fraud scheme involving the use of boiler-room stock sale techniques and other egregious securities fraud violations. The Court ordered Zubkis to disgorge $21,578,731 in his illicit gains from the scheme, and permanently barred Zubkis from serving as an officer and director of a public company. Judge Koeltl previously found that, over "a period of several years, Mr. Zubkis, as head of [his corporation] Z3, knowingly orchestrated a securities fraud that netted several million dollars and from which he stood to profit personally. The misrepresentations in this case were egregious. This is, moreover, not the first time that Mr. Zubkis has been found in violation of securities related rules." In ordering the yacht seizure on August 11, Judge Koetl found that the "Commission has made a prima facie showing, and has demonstrated a sufficient basis to infer, that . . . Zubkis violated the [disgorgement] Judgment by failing to pay any portion of the $21,578,731.39 ordered disgorgement, and by continuing to serve as an officer and director of [a public company]," and that "Zubkis is the legal or equitable owner of the Yacht." In addition to ordering the yacht seizure, Judge Koeltl, at the Commission's request, froze certain "escrow accounts" also believed to be owned by Zubkis.
Litigation Release No. 18285 / August 13, 2003 SEC OBTAINS SEIZURE OF LUXURY YACHT TO ENFORCE $21 MILLION JUDGMENT AGAINST DEFENDANT VLADISLAV STEVEN ZUBKIS SECURITIES AND EXCHANGE COMMISSION v. VLADISLAV STEVEN ZUBKIS, 97 Civ. 8086 (S.D.N.Y.) The Securities and Exchange Commission announced today that, on August 12, 2003, the United States Marshal's Service seized a 75-foot luxury yacht in San Diego, California, believed to belong to defendant Vladislav Steven Zubkis, as part of the Commission's efforts to enforce a $21 million securities fraud judgment against Zubkis. On August 11, the Commission obtained an emergency order from Federal District Judge John G. Koeltl in New York, without notice to Zubkis, to seize the yacht and turn it over to a court-appointed receiver before Zubkis could remove it from United States waters. The receiver is currently holding the yacht in San Diego, pending a final determination by the Court regarding whether to permit the receiver to sell the yacht and apply the sale proceeds toward satisfaction of the Commission's judgment against Zubkis. Judge Koeltl previously held Zubkis liable for orchestrating a complex securities fraud scheme involving the use of boiler-room stock sale techniques and other egregious securities fraud violations. The Court ordered Zubkis to disgorge $21,578,731 in his illicit gains from the scheme, and permanently barred Zubkis from serving as an officer and director of a public company. Judge Koeltl previously found that, over "a period of several years, Mr. Zubkis, as head of [his corporation] Z3, knowingly orchestrated a securities fraud that netted several million dollars and from which he stood to profit personally. The misrepresentations in this case were egregious. This is, moreover, not the first time that Mr. Zubkis has been found in violation of securities related rules." In ordering the yacht seizure on August 11, Judge Koetl found that the "Commission has made a prima facie showing, and has demonstrated a sufficient basis to infer, that . . . Zubkis violated the [disgorgement] Judgment by failing to pay any portion of the $21,578,731.39 ordered disgorgement, and by continuing to serve as an officer and director of [a public company]," and that "Zubkis is the legal or equitable owner of the Yacht." In addition to ordering the yacht seizure, Judge Koeltl, at the Commission's request, froze certain "escrow accounts" also believed to be owned by Zubkis.