Biozoom, Inc. Fair Fund Distribution Agent Announces Notice of Distribution Plan

WASHINGTON, Sept. 2, 2016 /PRNewswire/ -- If you purchased or otherwise acquired Biozoom, Inc. ("Biozoom"; OTCBB ticker: BIZM; CUSIP: 09072T100) common shares on or between May 16, 2013 and June 25, 2013, you may be entitled to receive a payment from the Biozoom Fair Fund ("Fair Fund").

Background

On July 3, 2013, the Securities and Exchange Commission ("SEC" or "Commission") filed a complaint in United States District Court, Southern District of New York alleging that Magdalena Tavella, Andres Horacio Ficicchia, Gonzalo Garcia Blaya, Lucia Mariana Hernando, Cecilia De Lorenzo, Adriana Rosa Bagattin, Daniela Patricia Goldman, and Mariano Pablo Ferrari (collectively, the "Defendants") had unlawfully sold to the public almost $34 million worth of securities in Biozoom (f/k/a Entertainment Art, Inc.), a penny stock company traded on the Over-the-Counter Bulletin Board.  No registration statement was in effect for the selling Defendants' resale of securities and thus their sales were in violation of Section 5 of the Securities Act.  Though the Defendants claimed that they had purchased the stock between November 2012 and March 2013 from the original shareholders, this was impossible because those original shareholders ceased to have any interest in the company more than three years earlier than the selling Defendants' claimed purchases. 

Pursuant to the Court's Final Judgment, a Fair Fund was established to distribute the disgorged funds for the benefit of investors under the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"), 15 U.S.C. § 7246(a). In partial satisfaction of the amounts owed by Defendants, the Commission has recovered a total of $16,117,936 from Defendants' accounts that were frozen pursuant to a July 9, 2013 Temporary Restraining Order. The Commission invested $16,022,574 with the United States Department of the Treasury at the Bureau of the Fiscal Service ("BFS").  It is doubtful, but possible, that additional funds will be recovered from the Defendants from various foreign sources. 

Plan of Allocation

The Net Available Fair Fund for the Biozoom distribution will be allocated to Eligible Claimants according to the Plan of Allocation.  Preliminary calculations will be made for all Eligible Claimants on a pro rata basis determined by an Eligible Claimant's investment in Biozoom common stock divided by the sum of all Eligible Claimants' investments. Recognized Claim amounts will be calculated for all Eligible Claimants whose preliminary calculation amounts exceed a $10 Distribution De Minimis. The recovery per claim is limited to the Recognized Claim.  The excess amount in the Fair Fund shall be distributed to the U.S. Treasury. Appendix I to the Distribution Plan, available at www.BiozoomFairFund.com, details the Plan of Allocation methodology and calculation.

How to Participate

If you believe you are an Eligible Claimant and would like to participate, you must submit a Proof of Claim Form by October 31, 2016. If you have not received a copy of the notice materials, you may download a copy at www.BiozoomFairFund.com, or request a copy by calling the Distribution Agent at 1-855-730-8647 or writing to:

Biozoom Fair Fund Distribution Agent
c/o KCC
P.O. Box 30233
College Station, TX 77842-3233

The submission of the Proof of Claim Form and the receipt and acceptance of a distribution by an Eligible Claimant is not intended to be a release of an Eligible Claimant's rights and claims against any party. If you do not submit a Proof of Claim Form, you will not receive a payment from the Fair Fund.

For More Information

This notice is a summary only. Complete details may be found in the Distribution Plan, Plan of Allocation, and other relevant case documents, all of which are available at www.BiozoomFairFund.com. You may also call the toll-free number at 1-855-730-8647 or send an email to [email protected].

Special Notice to Brokers and Nominees
Brokerage firms, banks and/or other persons or entities who purchased or held Biozoom common stock for the benefit of others are asked to view the full Notice at www.BiozoomFairFund.com to review additional instructions from the SEC.

SOURCE Biozoom, Inc. Fair Fund Distribution Agent

Related Links

http://www.BiozoomFairFund.com