On December 19, 2007, the Securities and Exchange Commission (“SEC” or “Commission”) filed a Complaint against brothers Brian N. Lines (“Brian Lines”) and Scott S. Lines (“Scott Lines”), six entities controlled by the Lines brothers (the “LOM Entities”), and six other defendants (collectively, the “Defendants”).  The Commission alleged a pair of separate, but similar, fraudulent schemes in which the Defendants manipulated the stock prices of two microcap companies, Sedona Software Solutions, Inc. (“Sedona”) and SHEP Technologies, Inc. (“SHEP”).  During the period of the frauds – for Sedona stock, January 21, 2003 to January 29, 2003, and for SHEP stock, February 19, 2003 to June 24, 2003 (collectively, the “Relevant Periods”) – the shares of both companies were quoted and traded on the OTC Bulletin Board.  The schemes involving the participation of the LOM Entities, Caribbean area-based entities owned by Brian Lines and his family, as well as stock promoters in Canada, and others took in illegal proceeds of approximately $5.8 million from the sales of Sedona and SHEP common stock.

To date, Brian Lines, Scott Lines, and the LOM Entities have paid the full amounts ordered, which total $2,532,321.  These funds, together with the $263,693.82 recovered from Curtis, comprise the Fair Fund of approximately $2.9 million (the “Fair Fund”) established by the Court’s December 19, 2019 Order, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so that the Fair Fund could be distributed to harmed investors (Dkt No. 246).

The Fair Fund is currently on deposit with the Court Registry Investment System (“CRIS”).  Any additional funds received pursuant to the final judgments, described above, will be added to the Fair Fund for distribution to harmed investors.

The Brian Lines, et al. Fair Fund currently holds close to $2.9 million and is currently on deposit with the Court Registry Investment System (“CRIS”). Accrued interest and additional collections in the Civil Action and in related SEC enforcement actions, if timely, may be added to the Brian Lines, et al. Fair Fund.

On December 19, 2019, pursuant to the Court’s Order, Miller Kaplan Arase LLP (“Miller Kaplan”) was appointed as Tax Administrator to handle the income tax reporting requirements of the Fair Fund (Dkt No. 246).  On December 20, 2019, pursuant to this Court’s Order, JND Legal Administration (“JND”) was appointed as the Distribution Agent to assist in overseeing the administration of the Fair Fund, in consultation with Commission staff, pursuant to the terms of this Distribution Plan (Dkt No. 249).

On December 2, 2021, the Court approved a plan for the distribution of the Brian Lines, et al. Fair Fund (the “Plan”).  The Plan governs the administration and distribution of the Distribution Fund and sets forth the method and procedures for distributing the assets of the Brian Lines, et al. Fair Fund to investors harmed by the conduct alleged in the Complaint.  You can review and download the Plan on the Important Documents tab on this website.

The Eligible Securities are those set forth below, with the corresponding Relevant Period included by row.  This information is also set forth on Attachment A on page 35 of the Plan, accessible on the Important Documents tab of this website.

Yes, in order to be considered for eligibility for a payment from the Brian Lines, et al. Fair Fund, you must submit a Proof of Claim Form (“Claim Form”), along with adequate supporting documentation and a completed tax certification. Your Claim Form, supporting documentation, and completed tax certification, must be sent to the Distribution Agent by First Class Mail or other delivery, as further described below: “How do I Submit a Claim”.  You can download the Claim Form from the Important Documents tab on this website.

You may submit your completed Claim Form, including tax certification and adequate supporting documentation by First Class Mail, postmarked no later than March 30, 2022 or, if not by First Class Mail, received by the Distribution Agent no later than March 30, 2022. Mailed and/or otherwise physically delivered Claim Forms should be directed to the following address:

Brian Lines, et al. Fair Fund
c/o JND Legal Administration
P.O. Box 91405
Seattle, WA 98111

Please do not submit original documents and please retain a copy of what you submit. If you fail to timely submit a completed and signed Claim Form by the deadline, you may be deemed ineligible to receive a distribution payment from the Brian Lines, et al. Fair Fund. The Claim Form must be accompanied by a completed tax certification and appropriate supporting documentation for each transaction listed on the Claim Form.

If you submit a Claim Form that fails to provide all required information, or is otherwise deficient, you may receive a Claim Deficiency Notice advising you of the reason(s) why the claim is deficient and an opportunity to cure such deficiencies.

If you invested in one or more of the publicly traded companies during the corresponding Relevant Periods (identified above: “What are the Eligible Securities and Corresponding Relevant Periods”; are not an “Excluded Party” as defined in the Distribution Plan and below:  “Who is an ‘Excluded Party’ as Defined in the Distribution Plan”; and suffered a loss according to the Plan, you may be eligible for a distribution from the Brian Lines, et al. Fair Fund.

To be considered for a Distribution Payment, you must timely submit a completed and signed Claim Form along with all relevant supporting documentation and a completed tax certification.  If you believe you may be eligible for a distribution and are not an Excluded Party, you should timely submit a Claim Form.

Defendants, their current or former employees, affiliates, or controlled entities who served in such capacity during the Relevant Period, and their assigns, creditors, heirs, distributees, spouses, parents, and children;

Any defendant in any action brought by the Commission or any class action lawsuit related to the conduct described in the Commission’s complaint in this action or any related Commission action (or any of his or her affiliates, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities) unless and until such defendant is found not liable in all such civil suits prior to the Filing Deadline, and proof of the finding(s) is included in such defendant’s timely filed Proof of Claim Form;
Any Person who, as of the Filing Deadline, has been the subject of criminal charges related to the violations alleged in the Commission’s complaint in this action or any related Commission action (or any of his or her affiliates, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities) unless and until such defendant is found not guilty in all such criminal actions prior to the Filing Deadline, and proof of the finding(s) is included in such defendant’s timely filed Proof of Claim Form;

Any Person who assigned their right to obtain a recovery in the Commission’s action against Defendants; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance, devise or operation of law;

The Distribution Agent, its employees, and those persons assisting the Distribution Agent in its role as the Distribution Agent.

Each Potentially Eligible Claimant’s Recognized Loss will be calculated in accordance with the Plan of Allocation in the Distribution Plan, Attachment A, and will be the basis for the Distribution Payments made to Eligible Claimants.  You can download and review the Plan on the Important Documents tab on this website.

Additional information can be found by visiting the “Important Documents” tab visible at the top of this webpage and by contacting the Distribution Agent, toll-free, at 1-833-961-3965; emailing Info@SECvBrianLinesetalFairFund.com; or by mailing a letter to:

Brian Lines, et al. Fair Fund
c/o JND Legal Administration
P.O. Box 91405
Seattle, WA 98111