Securities and Exchange Commission v. Raytheon Company et al

MOTION for Disbursement of Funds to Pay Tax Obligations

D.D.C.March 21, 2008

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ________________________________________________ ) SECURITIES AND EXCHANGE COMMISSION, ) 100 F Street, N.E. ) Civil Action No. 06-1182 Washington, D.C. 20549 ) ) PLAINTIFF’S MOTION Plaintiff, ) TO DISBURSE FUNDS TO ) PAY TAX OBLIGATIONS v. ) ) RAYTHEON COMPANY, DANIEL P. BURNHAM, ) and ALDO R. SERVELLO, ) ) Defendants. ) ________________________________________________) MOTION TO DISBURSE FUNDS TO PAY TAX OBLIGATIONS The Securities and Exchange Commission respectfully requests that the Court enter an Order for the Clerk of the Court to disburse funds on deposit with the registry of the Court to pay certain tax obligations of the Distribution Fund in this case. By orders dated August 23, 2006, the Court entered Final Judgments as to Defendants Raytheon Company, Daniel P. Burnham and Aldo R. Servello pursuant to Rule 54(b) of the Federal Rules of Civil Procedure. Pursuant to the Final Judgments, on August 31, 2006, Raytheon Company paid a total of $12,000,001 of disgorgement and penalty; on September 26, 2006, defendant Daniel P. Burnham paid a total of $1,238,344.37 of prejudgment interest, disgorgement and penalty; and on September 26, 2006, defendant Aldo R. Servello paid a total $34,628.28 of prejudgment interest, disgorgement and penalty; to the Clerk of this Court (the “Distribution Fund”). The Distribution Fund was thereafter deposited in an interest-bearing account, account number 1:06-cv1182, under the case name designation “SEC v. Raytheon Company, Daniel P. Burnham and Aldo Servello.” The Distribution Fund constitutes a Qualified Case 1:06-cv-01182-GK Document 39 Filed 03/21/2008 Page 1 of 6 2 Settlement Fund (QSF) under section 468B(g) of the Internal Revenue Code (IRC), 26 U.S.C. § 468B(g), and related regulations, 26 C.F.R. §§ 1.468B-1 through 1.468B-5. By order dated December 11, 2006, the Court entered an order appointing Damasco & Associates to fulfill the tax obligations of the Distribution Fund. Pursuant to that Order, the Tax Administrator is required to pay taxes in a manner consistent with treatment of the Distribution Fund as a QSF, and is to be compensated for the tax services provided. For the first and second calendar quarters 2008, the Tax Administrator has determined that the Distribution Fund should make estimated federal income tax payments of $52,250 per quarter, for a combined payment of $104,500. For the tax year 2007, the Tax Administrator has determined that the Distribution Fund owes $6,626 in tax liability to the federal and D.C. governments, which payment is due March 17, 2008. See Declaration of Jude P. Damasco in Support of Request to Make Tax Payment attached as Exhibit A. WHEREFORE, for all the foregoing reasons, the Commission respectfully requests that this Court enter the attached proposed Order and grant such other relief as it deems just and proper. Dated: March 21, 2008 Respectfully submitted, s/ John D. Worland, Jr. John D. Worland, Jr. (DC Bar No. 427797) Timothy N. England Beth Collier Groves Attorneys for Plaintiff Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 (202) 551-4542 Case 1:06-cv-01182-GK Document 39 Filed 03/21/2008 Page 2 of 6 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ________________________________________________ ) SECURITIES AND EXCHANGE COMMISSION, ) 100 F Street, N.E. ) Civil Action No. 06-1182 Washington, D.C. 20549 ) ) [PROPOSED] ORDER Plaintiff, ) TO DISBURSE FUNDS TO ) PAY TAX OBLIGATIONS v. ) ) RAYTHEON COMPANY, DANIEL P. BURNHAM, ) and ALDO R. SERVELLO, ) ) Defendants. ) ________________________________________________) [PROPOSED] ORDER TO DISBURSE FUNDS TO PAY TAX OBLIGATIONS The Court, having reviewed the Securities and Exchange Commission’s Motion to Disburse Funds to Pay Tax Obligations, and the supporting Declaration of the Tax Administrator (the “Declaration”), and for good cause shown, IT IS HEREBY ORDERED: 1. The Clerk of the Court shall issue a check on CRIS account number 1:06-cv1182, under the case name designation “SEC v. Raytheon Company, Daniel P. Burnham and Aldo Servello” for the amount of $111,126, payable to “Damasco & Associates, Trust Account,” for the payment of tax obligations as provided in the Declaration. The check shall contain the notation “SEC v. Raytheon Company, Daniel P. Burnham and Aldo Servello,” account number 1:06-cv1182, Employer Identification Number 20-8056054, and “first and second quarters 2008 tax estimate and 2007 tax liability.” Case 1:06-cv-01182-GK Document 39 Filed 03/21/2008 Page 3 of 6 2. The Clerk shall send the check by overnight mail to: Damasco & Associates LLP 700 Monte Vista Lane Half Moon Bay, CA 94019 Phone: 650-726-4100 The Commission’s counsel shall provide the Court Registry with the necessary overnight shipping information and the SEC’s billing number. Dated: _____________ ________________________________ UNITED STATES DISTRICT JUDGE 2 Case 1:06-cv-01182-GK Document 39 Filed 03/21/2008 Page 4 of 6 CERTIFICATE OF SERVICE This is to certify that I have caused a copy of this Motion to Disburse Funds to Pay Tax Obligations to be served upon the persons listed below by First Class Mail or ECF filing on this 21st day of March, 2008: Counsel for Raytheon Company Griffith L. Green Sidley Austin, LLP 1501 K Street, NW Washington, D.C. 2005-1401 202-736-8126 Counsel for Daniel P. Burnham and Aldo R. Servello Stephen J. Crimmins Bingham, LLP 2020 K Street, NW Washington, D.C. 20006-1806 202-373-6108 Counsel for Franklyn A. Caine Joseph I. Goldstein Mayer Brown Rowe & Maw 1909 K Street NW Washington, DC 20006 202-263-3344 Counsel for Edward S. Pliner Harry Weiss and Laurie Stegman Wilmer Hale LLP 1875 Pennsylvania Avenue, NW Washington, DC 20006 202-663-6993 (Weiss) 202-663-6225 (Stegman) 3 Case 1:06-cv-01182-GK Document 39 Filed 03/21/2008 Page 5 of 6 4 Counsel for James E. Gray Mark Radke LeBoeuf Lamb Greene & MacRae LLP 1875 Connecticut Avenue NW, Suite 1200 Washington, DC 20009 202-986-8076 (Radke) s/ John D. Worland, Jr. John D. Worland, Jr. Case 1:06-cv-01182-GK Document 39 Filed 03/21/2008 Page 6 of 6