E-Smart Technologies (fka ESTT)

[asilverstar]

SEC Secures Victory on Fraud Allegations Against Technology Executive

http://bit.ly/1Dul5as

Although the results do not cure any of the hard earned money and possibly life savings lost by investors that were duped, it does provide in a small measure, their day in court.

Does anyone know how the next phase of this works?
When does accounting come in for all the money invested?
What happens to Grace and Saito next?

Earlier;March 30,2015

http://bit.ly/1Dulw4F

JAMES E. BOASBERG, District Judge.
This long-running case features a civil-enforcement action brought by the Securities and Exchange Commission, alleging that e-Smart Technologies, Inc., a public company, was a sham. While it purported to be at the cutting edge of developing and manufacturing a biometric "smart" card, such claims, according to the Commission, were pie in the sky. In fact, pro se Defendants Mary Grace (the company's CEO) and Tamio Saito (its Chief Technology Officer) repeatedly misrepresented the cards' capabilities to investors. This Court, having granted summary judgment to the SEC on most of its claims against Grace, turns now to its allegations concerning Saito.

The Commission moves for summary judgment on both counts asserted against him — namely, that (1) he violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 by making material misrepresentations in connection with the sale of securities, and that (2) he violated Section 16(a) of the Act by failing to file required ownership statements. Saito both opposes and cross-moves for summary judgment on these claims. Resolution of these motions, in turn, requires the Court to rule on the parties' dueling independent motions to exclude the others' expert reports. Having waded through the extensive submissions — including Saito's, which are particularly resistant to sensible interpretation — the Court ultimately believes that the SEC has proven its case. It will thus grant the Commission's Motion for Summary Judgment and deny Saito's.