This website has been established to provide general information related to the James Douglas Distribution Fund.
The compilation of the Payment File was necessarily delayed due to additional efforts directed by the Commission to locate as many Eligible Recipients as possible since they forfeit their share of the fund if they did not respond with the necessary and required Certification Form. Those efforts have now been exhausted. Pursuant to the Court-approved Distribution Plan, prior to any distribution of the fund to Eligible Recipients, a Payment File must be provided to the Commission, who will then petition the Court to transfer the funds for distribution to the Eligible Recipients.
KCC has compiled the Payment File and provided to the Commission. On April 4, 2019, the Commission submitted a motion for the Court to enter an order to authorize the transfer of the funds for distribution. The motion can be reviewed by clicking the Case Documents link above.
If, and when, the Court enters an order approving the motion, the court registry will initiate the fund transfer so that distribution can occur. A date for distribution is not known at this time as it ultimately depends on the Court approving the motion and entering an order.
If you received a distribution payment in the 1980s as a harmed investor in SEC v. James L. Douglas, a/k/a/ James L. Cooper, Case No. C82-29 (Northern District of Ohio, Western Division), you may be entitled to a subsequent payment from the current distribution fund. Please contact the Distribution Agent at 1-866-680-6121 or by email to info@JamesDouglasDistributionFund.com to see if you are on the list of investors who received a previous distribution payment and are to receive a certification form in order to participate in the current distribution. For information about this second distribution, please review the Douglas Distribution Plan Notice, which describes the distribution and explains what steps you need to complete to obtain a distribution payment.
As provided in the Distribution Plan, the Distribution Fund (as defined below) less administrative costs is to be used pay injured investors. Those injured investors who received distribution payments in the First Distribution, or their legal heirs or successors, are eligible to participate in the distribution of the Distribution Fund subject to the conditions detailed in the Distribution Plan.
This litigation is currently pending before the Honorable Jack Zouhary in the United States District Court for the Northern District of Ohio, Western Division (the “Court”). This action is known as Securities and Exchange Commission v. James L. Douglas a/k/a James L. Cooper, Case No. C82-29.
On January 18, 1982, the Securities and Exchange Commission (the “Commission”) filed a complaint against James L. Douglas a/k/a James L. Cooper (“Douglas”), alleging that he had raised more than $7.5 million by offering and selling unregistered securities to more than 300 investors. The securities took the form of interests in multiple oil and gas partnerships. Douglas made multiple misrepresentations and omitted material information relating to the costs of drilling and refurbishing wells, his financial contributions to the partnerships, the involvement of related parties in transactions, and sharing of revenues with persons who solicited investments.
Simultaneously with the filing of the complaint, the Court entered a Final Judgment of Permanent Injunction with Douglas’s consent, leaving open the issue of monetary relief. On August 26, 1983, the Court entered another judgment by consent, directing Douglas to disgorge $200,000 under a three-year payment plan. The deadline for the final payment was August 26, 1986. From 1984 to 1986, Douglas missed two out of the three installment deadlines and paid only $121,975.29 of the $200,000, leaving an unpaid balance of $78,024.71.
On August 8, 1988, this Court found Douglas in contempt of the three-year payment plan. The amount Douglas paid, plus $20,000 frozen in the related lawsuit, SEC v. James R. Crawford, Case No. C 79-353 (N.D. Ohio), and accrued interest, was placed into a disgorgement fund in a court registry account. Total investor losses were estimated at $7.5 million. Two distributions, totaling $155,327.82, were made pursuant to Court Orders dated October 18, 1985 and September 26, 1988 (collectively, the “First Distribution”).
The SEC filed a motion for civil contempt on January 23, 2012. After an evidentiary hearing and briefing, the Court found Douglas in contempt and, on August 20, 2012, ordered the payment of the entire outstanding judgment of $78,024.71, plus post-judgment interest of approximately $1.78 million at the statutory rate of 10.74% from the date of the entry of the judgment in 1983. In December 2013, Defendant transferred $1.9 million to the registry of the Court, in full satisfaction of the outstanding judgment and post-judgment interest (the “Distribution Fund”).
On June 15, 2015, the Court appointed Kurtzman Carson Consultants, LLC (“KCC”) as distribution agent (“Distribution Agent”) to assist in overseeing the administration and distribution of the Distribution Fund in coordination with Commission staff, pursuant to the terms of the Distribution Plan.