SEC v. ADAM C. WASSERMAN, No. 1:18-cv-23729, Southern District of Florida (Sept. 12, 2018) — Complaint

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

CASE NO.

SECURITIES AND EXCHANGE COMMISSION,

                                                      Plaintiff,

v.

ADAM C. WASSERMAN,

                                                      Defendant.

COMPLAINT
Plaintiff Securities and Exchange Commission (the “Commission”) alleges:
SUMMARY
1. Adam C. Wasserman (“Wasserman”), the U.S.-based former chief financial
officer (“CFO”) of a public company headquartered in China, improperly commingled corporate
and personal funds as part of a practice to transfer funds to the U.S. while avoiding foreign
currency controls.
2. Defendant Wasserman served as the outsourced CFO to Issuer A, a NASDAQ-
listed microcap company, for several periods since 2007, including from December 2012 to
February 2016.  Wasserman provided CFO and accounting services to Issuer A through his
business, CFO Oncall, Inc. (“CFO Oncall”).  Beginning in December 2014, Wasserman began a
practice of transferring Issuer A funds from China to the U.S. to pay Issuer A’s U.S. expenses
using his personal joint checking account.  Over a 20-month period, Wasserman transferred more
than $400,000 in corporate funds through his personal bank account.  Wasserman previously
engaged in the same practice with at least two other China-based public companies.

2
3. By his actions, Wasserman violated Section 13(b)(5) of the Securities Exchange
Act of 1934 (“Exchange Act”) [15 U.S.C. § 78m(b)(5)] and should be enjoined from committing
such violations in the future.
JURISDICTION AND VENUE
4. This Court has jurisdiction over this action pursuant to Sections 21(d)(1),
21(d)(3)(A), 21(d)(5), and 27 of the Exchange Act [15 U.S.C. §§ 78u(d)(1), 78u(d)(3(A),
78u(d)(5) and 78aa].
5. Venue is proper in this district under Section 27 of the Exchange Act [15 U.S.C.
§ 78aa]. Certain of the acts and transactions constituting the alleged violations occurred in the
Southern District of Florida.  In addition, during the relevant time period, Wasserman resided in,
and CFO Oncall had its principal place of business in, the Southern District of Florida.
6. Wasserman, directly or indirectly, made use of the means or instrumentalities of
interstate commerce, or of the mails, or the facilities of a national securities exchange, in
connection with the transactions, acts, practices, and courses of business alleged in this
complaint.
DEFENDANT
7. Adam Wasserman, age 54, lives in Weston, Florida.  He served as Issuer A’s
outsourced CFO from November 2007 to February 2008, from March 2008 to December 2008,
and from December 2012 to February 2016.  At all other times since November 2007,
Wasserman provided outsourced accounting services to Issuer A through his business, CFO
Oncall.    Wasserman was issued a license from the New York State Education Department to
practice Certified Public Accountancy in November 1988; his license has been inactive since
June 1997.

3
RELATED ENTITIES
8. Issuer A is a company incorporated in Nevada with its principal place of business
in Wuxi City, Jiangsu Province, China.  Issuer A was formed in 2007 through a merger of a
public shell and a group of industrial manufacturing companies based in Wuxi, China, under
common ownership and control.  During the relevant time period, Issuer A had a market
capitalization of less than $15 million and was in the business of manufacturing textile machines
and industrial components.  Issuer A’s securities trade on the NASDAQ Capital Market and are
registered with the Commission pursuant to Section 12(b) of the Exchange Act.
9. CFO Oncall is a company incorporated in Florida with its principal place of
business in Broward County, Florida.  Wasserman is the principal and majority owner of CFO
Oncall.
FACTS
10. As a public company, Issuer A  was required to devise and maintain a system of
internal accounting controls sufficient to provide reasonable assurances that, among other things,
transactions were recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain accountability for
assets.
11. As a public company, Issuer A was also required to make and keep books,
records, and accounts, which, in reasonable detail, accurately and fairly reflected the transactions
and dispositions of the company’s assets.
12. As CFO of Issuer A, Wasserman was responsible for devising and maintaining
Issuer A’s system of internal accounting controls and for ensuring the accuracy of Issuer A’s
books and records.

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A. China Currency Restrictions
13. Upon information and belief, currency restrictions imposed by the Chinese
government limit the ability of companies to transfer cash directly from China to a corporate
account in the U.S.
B. Management of Issuer A’s U.S. Cash and Expenses
14. For each fiscal year from its formation in 2007 until at least 2016, Issuer A
generated most of its revenue in China.
15. During this period, Issuer A incurred a variety of U.S. expenses including audit,
legal, and filing fees.
16. Prior to December 2014, Issuer A generated cash within the U.S. to pay its
expenses in at least two different ways.
17. From approximately 2012 to 2013, Issuer A made sales of at least $1.7 million to
a U.S.-based customer who paid through wire transfers to Issuer A’s U.S. corporate bank
account.
18. Issuer A also raised cash from time to time by issuing securities to U.S. investors.
These investors wired funds to a U.S. escrow account and in turn to Issuer A’s U.S. corporate
bank account.
C. Wire Transfers from China to the U.S.
19. By late 2014, Issuer A lacked sufficient U.S. cash to pay expenses.
20. To address this problem, Wasserman developed the following practice:  Issuer A
personnel wired Issuer A funds into Wasserman’s personal bank account, a joint checking
account with his wife.  After subtracting wire fees, Wasserman transferred these funds to Issuer
A’s U.S. account under his control.

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21. From December 2014 to July 2016, in a series of nine transactions, Wasserman
transferred a total of $423,989.00 in Issuer A’s corporate funds from China to the U.S. via his
personal account:

Wires of Issuer A Funds from China to
Wasserman’s Personal Account
Deposits by Wasserman into
Issuer A’s U.S. Account
No. Date Amount Fees Date Amount
1          12/30/2014
12/30/2014
$16,000.00
$37,000.00
($28.00)
($28.00)
01/09/2015         $52,944.00
2          01/23/2015          $10,000.00            ($28.00)          01/30/2015           $9,972.00
3          03/26/2015
03/26/2015
$37,000.00
$50,000.00
($28.00)
($28.00)
03/27/2015         $86,944.00
4          06/10/2015          $50,000.00            ($28.00)          06/12/2015          $49,972.00
5          11/06/2015          $32,548.00            ($28.00)          11/12/2015          $32,520.00
6          02/01/2016          $44,500.00            ($28.00)          02/03/2016          $44,472.00
7          02/24/2016          $10,000.00            ($28.00)          02/24/2016           $9,972.00
8          03/21/2016
03/21/2016
03/22/2016
$35,500.00
$35,500.00
$34,333.00
($28.00)
($28.00)
($28.00)
03/21/2016       $105,249.00
9          06/24/2016
07/05/2016
$10,000.00
$22,000.00
($28.00)
($28.00)
07/11/2016         $31,944.00

Total $423,989.00

22. On December 30, 2014, Issuer A personnel in China wired $16,000.00 and
$37,000.00 of Issuer A funds from accounts in China to Wasserman’s personal account.  The
banks charged $56.00 in transfer fees, resulting in $52,944.00 of Issuer A’s corporate funds
being deposited into Wasserman’s personal account.  Using a personal check dated January 9,
2015, Wasserman transferred that $52,944.00 from his personal account to Issuer A’s U.S.
account.
23. On January 23, 2015, Issuer A personnel in China wired $10,000.00 of Issuer A
funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in
transfer fees, resulting in $9,972.00 of Issuer A’s corporate funds being deposited into
Wasserman’s personal account.  Wasserman used personal checks dated January 30, 2015 and

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February 2, 2015 to transfer that $9,972.00 from his personal account first to his business
account and then to Issuer A’s U.S. account.
24. On March 26, 2015, Issuer A personnel in China wired $37,000.00 and
$50,000.00 of Issuer A funds from accounts in China to Wasserman’s personal account.  The
banks charged $56.00 in transfer fees, resulting in $86,944.00 of Issuer A’s corporate funds
being deposited into Wasserman’s personal account.  Using a personal check dated March 27,
2015, Wasserman transferred that $86,944.00 from his personal account to Issuer A’s U.S.
account.
25. On June 10, 2015, Issuer A personnel in China wired $50,000.00 of Issuer A
funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in
transfer fees, resulting in $49,972.00 of Issuer A’s corporate funds being deposited into
Wasserman’s personal account.  Using a handwritten withdrawal slip dated June 12, 2015,
Wasserman transferred that $49,972.00 from his personal account to Issuer A’s U.S. account.
26. On November 6, 2015, Issuer A personnel in China wired $32,548.00 of Issuer A
funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in
transfer fees, resulting in $32,520.00 of Issuer A’s corporate funds being deposited into
Wasserman’s personal account.  Using a personal check dated November 12, 2015, Wasserman
transferred that $32,520.00 from his personal account to Issuer A’s U.S. account.
27. On February 1, 2016, Issuer A personnel in China wired  $44,500.00 of Issuer A
funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in
transfer fees, resulting in $44,472.00 of Issuer A’s corporate funds being deposited into
Wasserman’s personal account.  Using a personal check dated February 3, 2016, Wasserman
transferred that $44,472.00 from his personal account to Issuer A’s U.S. account.

7
28. On February 24, 2016, Issuer A personnel in China wired $10,000.00 of Issuer A
funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in
transfer fees, resulting in $9,972.00 of Issuer A’s corporate funds being deposited into
Wasserman’s personal account.  Using a personal check dated February 24, 2016, Wasserman
transferred that $9,972.00 from his personal account to Issuer A’s U.S. account.
29. On March 21 and 22, 2016, Issuer A personnel in China wired $35,500.00,
$35,500.00, and $34,333 of Issuer A funds from accounts in China to Wasserman’s personal
account.  The banks charged $84.00 in transfer fees, resulting in $105,249.00 of Issuer A’s
corporate funds being deposited into Wasserman’s personal account.  Using a personal check
dated March 21, 2016, Wasserman transferred that $105,249.00 from his personal account to
Issuer A’s U.S. account.
30. On June 24, 2016 and July 5, 2016, Issuer A personnel in China wired $10,000.00
and $22,000.00 of Issuer A funds from accounts in China to Wasserman’s personal account.  The
banks charged $56.00 in transfer fees, resulting in $31,944.00 of Issuer A’s corporate funds
being deposited into Wasserman’s personal account.  Using a personal check dated July 11,
2016, Wasserman transferred that $31,944.00 from his personal account to Issuer A’s U.S.
account.
31. Other than deducting wire fees, Wasserman transferred the exact amount of Issuer
A’s corporate funds he received into Issuer A’s U.S. account and did not otherwise personally
benefit from the transfers.
32. By repeatedly commingling corporate funds with his own personal funds,
Wasserman put Issuer A’s assets at risk for misuse and loss, particularly if something were to
happen to him while the funds were in his account.  In designing and facilitating these transfers,

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Wasserman failed to implement a system of internal accounting controls designed to ensure that
Issuer A’s assets remained under corporate control.
CLAIM FOR RELIEF

Violations of Section 13(b)(5) of the Exchange Act
33. Paragraphs 1 through 32 are hereby realleged and incorporated by reference as if
set forth fully herein.
34. As alleged more fully above, Wasserman knowingly failed to implement a system
of internal accounting controls at Issuer A.
35. By reason of the foregoing, Wasserman has violated and, unless restrained, will
continue to violate Section 13(b)(5) of the Exchange Act [15 U.S.C. § 78m(b)(5)].

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PRAYER FOR RELIEF
WHEREFORE, the Commission respectfully requests that this Court enter a final
judgement:
A. Permanently restraining and enjoining Wasserman from violating Section
13(b)(5) of the Exchange Act [15 U.S.C. § 78m(b)(5)];
B. Ordering pursuant to Section 21(d)(3) of the Exchange Act [15 U.S.C.
§ 78u(d)(3)] Wasserman pay a civil monetary penalty; and
C. Prohibiting pursuant to Section 21(d)(5) of the Exchange Act [15 U.S.C.
§ 78u(d)(5)] Wasserman from acting as an officer or director of any issuer that has a class of
securities registered under Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to
file reports under Section 15(d) of the Exchange Act [15 U.S.C. § 78o].
D. Grant such further relief as this Court may deem just and appropriate.

Dated:  September 12, 2018

Of Counsel
Amy Friedman
Gregory C. Padgett
Cecilia B. Connor

Respectfully submitted,

/s/ Gregory R. Bockin
Gregory R. Bockin
Senior Trial Attorney
202-551-5684
[email protected]

James E. Smith
Assistant Chief Litigation Counsel
202-551-5881
[email protected]

Attorneys for Plaintiff
SECURITIES AND EXCHANGE COMMISSION
100 F Street NE
Washington DC 20549

UNITED STATES DISTRICT COURT 
SOUTHERN DISTRICT OF FLORIDA 

 
CASE NO.  

 
SECURITIES AND EXCHANGE COMMISSION, 
 
 Plaintiff, 
 

v. 
 
ADAM C. WASSERMAN, 
 
 Defendant.  
 

 

 
COMPLAINT 

Plaintiff Securities and Exchange Commission (the “Commission”) alleges: 

SUMMARY 

1. Adam C. Wasserman (“Wasserman”), the U.S.-based former chief financial 

officer (“CFO”) of a public company headquartered in China, improperly commingled corporate 

and personal funds as part of a practice to transfer funds to the U.S. while avoiding foreign 

currency controls. 

2. Defendant Wasserman served as the outsourced CFO to Issuer A, a NASDAQ-

listed microcap company, for several periods since 2007, including from December 2012 to 

February 2016.  Wasserman provided CFO and accounting services to Issuer A through his 

business, CFO Oncall, Inc. (“CFO Oncall”).  Beginning in December 2014, Wasserman began a 

practice of transferring Issuer A funds from China to the U.S. to pay Issuer A’s U.S. expenses 

using his personal joint checking account.  Over a 20-month period, Wasserman transferred more 

than $400,000 in corporate funds through his personal bank account.  Wasserman previously 

engaged in the same practice with at least two other China-based public companies.   

Case 1:18-cv-23729-XXXX   Document 1   Entered on FLSD Docket 09/12/2018   Page 1 of 9



2 

3. By his actions, Wasserman violated Section 13(b)(5) of the Securities Exchange 

Act of 1934 (“Exchange Act”) [15 U.S.C. § 78m(b)(5)] and should be enjoined from committing 

such violations in the future.   

JURISDICTION AND VENUE 

4. This Court has jurisdiction over this action pursuant to Sections 21(d)(1), 

21(d)(3)(A), 21(d)(5), and 27 of the Exchange Act [15 U.S.C. §§ 78u(d)(1), 78u(d)(3(A), 

78u(d)(5) and 78aa]. 

5. Venue is proper in this district under Section 27 of the Exchange Act [15 U.S.C. 

§ 78aa]. Certain of the acts and transactions constituting the alleged violations occurred in the 

Southern District of Florida.  In addition, during the relevant time period, Wasserman resided in, 

and CFO Oncall had its principal place of business in, the Southern District of Florida. 

6. Wasserman, directly or indirectly, made use of the means or instrumentalities of 

interstate commerce, or of the mails, or the facilities of a national securities exchange, in 

connection with the transactions, acts, practices, and courses of business alleged in this 

complaint. 

DEFENDANT 

7. Adam Wasserman, age 54, lives in Weston, Florida.  He served as Issuer A’s 

outsourced CFO from November 2007 to February 2008, from March 2008 to December 2008, 

and from December 2012 to February 2016.  At all other times since November 2007, 

Wasserman provided outsourced accounting services to Issuer A through his business, CFO 

Oncall.    Wasserman was issued a license from the New York State Education Department to 

practice Certified Public Accountancy in November 1988; his license has been inactive since 

June 1997. 

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RELATED ENTITIES 

8. Issuer A is a company incorporated in Nevada with its principal place of business 

in Wuxi City, Jiangsu Province, China.  Issuer A was formed in 2007 through a merger of a 

public shell and a group of industrial manufacturing companies based in Wuxi, China, under 

common ownership and control.  During the relevant time period, Issuer A had a market 

capitalization of less than $15 million and was in the business of manufacturing textile machines 

and industrial components.  Issuer A’s securities trade on the NASDAQ Capital Market and are 

registered with the Commission pursuant to Section 12(b) of the Exchange Act. 

9. CFO Oncall is a company incorporated in Florida with its principal place of 

business in Broward County, Florida.  Wasserman is the principal and majority owner of CFO 

Oncall. 

FACTS 

10. As a public company, Issuer A  was required to devise and maintain a system of 

internal accounting controls sufficient to provide reasonable assurances that, among other things, 

transactions were recorded as necessary to permit preparation of financial statements in 

conformity with generally accepted accounting principles and to maintain accountability for 

assets. 

11. As a public company, Issuer A was also required to make and keep books, 

records, and accounts, which, in reasonable detail, accurately and fairly reflected the transactions 

and dispositions of the company’s assets. 

12. As CFO of Issuer A, Wasserman was responsible for devising and maintaining 

Issuer A’s system of internal accounting controls and for ensuring the accuracy of Issuer A’s 

books and records.  

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A. China Currency Restrictions 

13. Upon information and belief, currency restrictions imposed by the Chinese 

government limit the ability of companies to transfer cash directly from China to a corporate 

account in the U.S.   

B. Management of Issuer A’s U.S. Cash and Expenses 

14. For each fiscal year from its formation in 2007 until at least 2016, Issuer A 

generated most of its revenue in China. 

15. During this period, Issuer A incurred a variety of U.S. expenses including audit, 

legal, and filing fees.  

16. Prior to December 2014, Issuer A generated cash within the U.S. to pay its  

expenses in at least two different ways.   

17. From approximately 2012 to 2013, Issuer A made sales of at least $1.7 million to 

a U.S.-based customer who paid through wire transfers to Issuer A’s U.S. corporate bank 

account. 

18. Issuer A also raised cash from time to time by issuing securities to U.S. investors.  

These investors wired funds to a U.S. escrow account and in turn to Issuer A’s U.S. corporate 

bank account. 

C. Wire Transfers from China to the U.S. 

19. By late 2014, Issuer A lacked sufficient U.S. cash to pay expenses. 

20. To address this problem, Wasserman developed the following practice:  Issuer A 

personnel wired Issuer A funds into Wasserman’s personal bank account, a joint checking 

account with his wife.  After subtracting wire fees, Wasserman transferred these funds to Issuer 

A’s U.S. account under his control. 

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21. From December 2014 to July 2016, in a series of nine transactions, Wasserman 

transferred a total of $423,989.00 in Issuer A’s corporate funds from China to the U.S. via his 

personal account:  

 Wires of Issuer A Funds from China to 
Wasserman’s Personal Account 

Deposits by Wasserman into 
Issuer A’s U.S. Account 

No. Date Amount Fees Date Amount 

1 12/30/2014 
12/30/2014 

$16,000.00 
$37,000.00 

($28.00) 
($28.00) 

01/09/2015 $52,944.00 

2 01/23/2015 $10,000.00 ($28.00) 01/30/2015 $9,972.00 

3 03/26/2015 
03/26/2015 

$37,000.00 
$50,000.00 

($28.00) 
($28.00) 

03/27/2015 $86,944.00 

4 06/10/2015 $50,000.00 ($28.00) 06/12/2015 $49,972.00 

5 11/06/2015 $32,548.00 ($28.00) 11/12/2015 $32,520.00 

6 02/01/2016 $44,500.00 ($28.00) 02/03/2016 $44,472.00 

7 02/24/2016 $10,000.00 ($28.00) 02/24/2016 $9,972.00 

8 03/21/2016 
03/21/2016 
03/22/2016 

$35,500.00 
$35,500.00 
$34,333.00 

($28.00) 
($28.00) 
($28.00) 

03/21/2016 $105,249.00 

9 06/24/2016 
07/05/2016 

$10,000.00 
$22,000.00 

($28.00) 
($28.00) 

07/11/2016 $31,944.00 

    Total $423,989.00 

 
22. On December 30, 2014, Issuer A personnel in China wired $16,000.00 and 

$37,000.00 of Issuer A funds from accounts in China to Wasserman’s personal account.  The 

banks charged $56.00 in transfer fees, resulting in $52,944.00 of Issuer A’s corporate funds 

being deposited into Wasserman’s personal account.  Using a personal check dated January 9, 

2015, Wasserman transferred that $52,944.00 from his personal account to Issuer A’s U.S. 

account. 

23. On January 23, 2015, Issuer A personnel in China wired $10,000.00 of Issuer A 

funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in 

transfer fees, resulting in $9,972.00 of Issuer A’s corporate funds being deposited into 

Wasserman’s personal account.  Wasserman used personal checks dated January 30, 2015 and 

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February 2, 2015 to transfer that $9,972.00 from his personal account first to his business 

account and then to Issuer A’s U.S. account. 

24. On March 26, 2015, Issuer A personnel in China wired $37,000.00 and 

$50,000.00 of Issuer A funds from accounts in China to Wasserman’s personal account.  The 

banks charged $56.00 in transfer fees, resulting in $86,944.00 of Issuer A’s corporate funds 

being deposited into Wasserman’s personal account.  Using a personal check dated March 27, 

2015, Wasserman transferred that $86,944.00 from his personal account to Issuer A’s U.S. 

account. 

25. On June 10, 2015, Issuer A personnel in China wired $50,000.00 of Issuer A 

funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in 

transfer fees, resulting in $49,972.00 of Issuer A’s corporate funds being deposited into 

Wasserman’s personal account.  Using a handwritten withdrawal slip dated June 12, 2015, 

Wasserman transferred that $49,972.00 from his personal account to Issuer A’s U.S. account. 

26. On November 6, 2015, Issuer A personnel in China wired $32,548.00 of Issuer A 

funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in 

transfer fees, resulting in $32,520.00 of Issuer A’s corporate funds being deposited into 

Wasserman’s personal account.  Using a personal check dated November 12, 2015, Wasserman 

transferred that $32,520.00 from his personal account to Issuer A’s U.S. account. 

27. On February 1, 2016, Issuer A personnel in China wired  $44,500.00 of Issuer A 

funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in 

transfer fees, resulting in $44,472.00 of Issuer A’s corporate funds being deposited into 

Wasserman’s personal account.  Using a personal check dated February 3, 2016, Wasserman 

transferred that $44,472.00 from his personal account to Issuer A’s U.S. account. 

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28. On February 24, 2016, Issuer A personnel in China wired $10,000.00 of Issuer A 

funds from an account in China to Wasserman’s personal account.  The banks charged $28.00 in 

transfer fees, resulting in $9,972.00 of Issuer A’s corporate funds being deposited into 

Wasserman’s personal account.  Using a personal check dated February 24, 2016, Wasserman 

transferred that $9,972.00 from his personal account to Issuer A’s U.S. account. 

29. On March 21 and 22, 2016, Issuer A personnel in China wired $35,500.00, 

$35,500.00, and $34,333 of Issuer A funds from accounts in China to Wasserman’s personal 

account.  The banks charged $84.00 in transfer fees, resulting in $105,249.00 of Issuer A’s 

corporate funds being deposited into Wasserman’s personal account.  Using a personal check 

dated March 21, 2016, Wasserman transferred that $105,249.00 from his personal account to 

Issuer A’s U.S. account. 

30. On June 24, 2016 and July 5, 2016, Issuer A personnel in China wired $10,000.00 

and $22,000.00 of Issuer A funds from accounts in China to Wasserman’s personal account.  The 

banks charged $56.00 in transfer fees, resulting in $31,944.00 of Issuer A’s corporate funds 

being deposited into Wasserman’s personal account.  Using a personal check dated July 11, 

2016, Wasserman transferred that $31,944.00 from his personal account to Issuer A’s U.S. 

account. 

31. Other than deducting wire fees, Wasserman transferred the exact amount of Issuer 

A’s corporate funds he received into Issuer A’s U.S. account and did not otherwise personally 

benefit from the transfers. 

32. By repeatedly commingling corporate funds with his own personal funds, 

Wasserman put Issuer A’s assets at risk for misuse and loss, particularly if something were to 

happen to him while the funds were in his account.  In designing and facilitating these transfers, 

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8 

Wasserman failed to implement a system of internal accounting controls designed to ensure that 

Issuer A’s assets remained under corporate control. 

CLAIM FOR RELIEF 
 

Violations of Section 13(b)(5) of the Exchange Act 

33. Paragraphs 1 through 32 are hereby realleged and incorporated by reference as if 

set forth fully herein.   

34. As alleged more fully above, Wasserman knowingly failed to implement a system 

of internal accounting controls at Issuer A. 

35. By reason of the foregoing, Wasserman has violated and, unless restrained, will 

continue to violate Section 13(b)(5) of the Exchange Act [15 U.S.C. § 78m(b)(5)]. 

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PRAYER FOR RELIEF  

WHEREFORE, the Commission respectfully requests that this Court enter a final 

judgement: 

A. Permanently restraining and enjoining Wasserman from violating Section 

13(b)(5) of the Exchange Act [15 U.S.C. § 78m(b)(5)]; 

B. Ordering pursuant to Section 21(d)(3) of the Exchange Act [15 U.S.C. 

§ 78u(d)(3)] Wasserman pay a civil monetary penalty; and 

C. Prohibiting pursuant to Section 21(d)(5) of the Exchange Act [15 U.S.C. 

§ 78u(d)(5)] Wasserman from acting as an officer or director of any issuer that has a class of 

securities registered under Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to 

file reports under Section 15(d) of the Exchange Act [15 U.S.C. § 78o]. 

D. Grant such further relief as this Court may deem just and appropriate. 

 
 
Dated:  September 12, 2018 
 
 
 
 
 
 
 
 
 
 
 
 

Of Counsel 
Amy Friedman 
Gregory C. Padgett 
Cecilia B. Connor 

 

Respectfully submitted, 
 
/s/ Gregory R. Bockin  
Gregory R. Bockin 
Senior Trial Attorney 
202-551-5684 
[email protected] 

 
James E. Smith 
Assistant Chief Litigation Counsel 
202-551-5881 
[email protected] 
 
Attorneys for Plaintiff 
SECURITIES AND EXCHANGE COMMISSION 
100 F Street NE 
Washington DC 20549 
 

 

Case 1:18-cv-23729-XXXX   Document 1   Entered on FLSD Docket 09/12/2018   Page 9 of 9