Biozoom, Inc. Fair Fund

Welcome to the Biozoom, Inc. Fair Fund Website

This website has been established to provide general information related to the Biozoom, Inc. (“Biozoom” or the “Company”) Fair Fund .

This is a securities class action litigation currently pending before the Honorable Naomi Reice Buchwald in the United States District Court for the Southern District of New York (the “Court”). This action is known as Securities and Exchange Commission v. Tavella et al., Case No. 13-CIV-4609.

On July 3, 2013, the Securities and Exchange Commission (“SEC” or “Commission”) filed a complaint in the Court 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.

From March 2013 to June 2013, Defendants opened brokerage accounts at broker-dealers and deposited millions of shares of Biozoom that they claimed did not bear a restrictive legend and were free-trading shares. All of the Defendants claimed that they had purchased all or some of their shares from some of the original shareholders of Entertainment Art in transactions between November 2012 and March 2013.

On July 9, 2013, a Temporary Restraining Order (“TRO”) was granted freezing the brokerage accounts of the Defendants holding Biozoom shares and any accounts held by financial institutions or brokers that have the proceeds of the Biozoom sales on behalf of the Defendants. Pursuant to the Final Judgment, a Fair Fund was established to distribute the disgorged funds for the benefit of investors pursuant to 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, Defendants accounts that were frozen pursuant to the TRO, were ordered to be turned over. To date, the Commission recovered a total of $16,117,936 from the frozen assets. The Commission invested $16,022,574 with 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.

Although the information on this website is intended to assist you, it does not replace the information contained in the Biozoom, Inc. Fair Fund Notice (the "Notice"). We recommend that you read the Notice and other relevant case documents carefully.

Important Dates and Deadlines

Submit a Claim Form October 31, 2016