P.

02
MAR-12-2012 21:58
Ira Lee Sorkin
Member of tile Fi rm
Tel 646.414.6830
Fax 973.422.6889
The Clerk ofCourt is Directed to:
iso rkin@lowenslein.com
--/Tenn motion (doc.
_V_ 1Doc. and File As:
March 13,2012
VIA FACSJMJLE
Honorable J. Paul Oetken
United States District Judge
Southern District of New York
500 Pearl Street
New York, NY 10007-1312
USDCSDNY
DOCUMENT
ELECTRONICALL Y FILED
DOC#:____
DATE FILED: MAR 13 2,12
Re: SEC v. Compania Internaeional Financiera S.A. (JPO)
Dear Judge Oetken:
As Your Honor well knows, this Finn represents Defendants Compania Internacional
Financiera S.A. ("Compania
n
) and Coudree Capital Gestion S.A. ("Coudree") (collectively,
"Defendants") in the above-referenced matter. While Your Local Rules do not provide for
additional letters while motions are pending, we appreciate Your Honor's pennission to bring
recent events to Your Honor's attention. Currently pending before Your Honor is the Securities
and Exchange Commission's (,'SEC" or "Commission") motion to dismiss the First Amended
Complaint without prejudice, and Defendants' opposition to the motion. In deciding such a
motion, "the concern that often weighs most heavily with a court ... is whether the dismissal
wi)) substantially prejudice the defendants." SEC v. Oakford Corp., 181 F.R.D. 269, 273
(S.D.N.Y. 1998) (Rakoff, J.) (citation omitted). As Defendants' opposition brief argues,
granting the Commission's motion would substantially prejudice Defendants because the
"significant reputational and business damage" which Defendants have suffered to date because
of the Commission's aIJegations "would only continue if the case was dismissed without
prejudice." See Def. Opp. Br. at 6 (emphasis in original).
We write to bring two recent events to Your Honor's attention which confirm Defendants'
concerns. The first is a recent press article which appeared in The New York Post on March 10,
2012 entitled, IISEC Probing Switzerland-based Group for Passing Around Inside Information."
See Exhibit A. The article states that the Commission's "move to drop the case against [Yomi]
Rodrig
l
is driven. in large part, by the SEC's desire to build an even bigfer case that alleges
Rodrig shared illegal stock tips with at least three other Geneva traders[.]" Mr. Rodrig denies
any and all allegations that he engaged in any illegal conduct with the three referenced Geneva
traders. Despite this reality, this article will inflict significant reputational damage on Mr.
Rodrig. In addition to the press article, Mr. Rodrig was recently denied a mortgage for the
I Compania and Coudree are controlled by Yorni Rodrig.
7. The article also appeared in Mr. Rodrig'g native country, Turkey. See Exhibit B.
Lowenstein Sandler PC
www.lowenlitein.com
1251 Avenue of the Americas New York. NY 10020 Tel 212 262 6700 Fax 2122617402 New York Palo Aho Roseland
Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 1 of 8
P.03
21:58
Honorable J. Paul Oetken
March 13,2012
Page 2
purchase of property in New York City because of the SEC's pending allegations. See Exhibit
C (e-mail from Debra Schultz of Manhattan Mortgage confirming that mortgage cannot close
while SEC case remains open).
As the above-cited article and e-mail illustrate, if this case is dismissed without prejudice Mr.
Rodrig will continue to be subject to significant reputational damage which has a debilitating
affect on his ability to conduct his businesses.
Respect lJy submitted,
Ira
ILS:
25003/2
03/13/12 19979744.1
Enc]osure(s)
cc: Rua M. Kelly, Esq. (Securities and Exchange Commission) (via e-mail w/enclosures)
Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 2 of 8
P.04 ~ ~ R - 1 2 - 2 0 1 2 21:58
EXHIBIT A
Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 3 of 8
P.05
MAR-12-2012 21:58
SEC probing Switzerland-based group for passing around inside information - NYPOST....
Page 1 of 1
UP<I.""t SaL, Mar 10.2012. 2'2A Pt.I
SEC probing Switzerland·based group for passing
around inside information
By KAJA IM-IITEHOUSE
..... u"....,t2:2. PM. 111_ '0,:1012
_11:12PM._'.2011!
Wall Streefs top cop is probing a Switzerland-based group of moneymen for passing around illegal insider tips about
American and European companies, Including Arch Chemical of Norwalk, Conn., The Post has learned.
The existence of the probe by Mary Schapiro's Securities and Exchange Commission recently came to light as the
regulator moved to drop a civil lawsuit against one member of the alleged ring - a Turlclsh trader living in Geneva named
Yomi Rodrlg.
The SEC sued two of Rodng's money management firms last year for allegedly trading ahead of the $1.2 billion buyout of
Arch In July 2011.
The move to drop the case against Rodrig is driven, in large part, by the SEC's desire to build an even bigger case that
alleges Rodrig shared Illegal stock tips with at least three other Geneva traders. The Post has leamed.
One of the traders, Antoine Khalife, founder of Iris Capital Securities, was charged in a seemingly unrelated case last
November for trading in the $2 bilion acquisition of Spain's Telvent by France's Schneider Electric in June.
The SEC is also looking at Lucien Selce, founder ofVisla Capital Management SA, and Thierry Braha, founder of Stokors
SA. Neither man has been charged with any wrongdoing.
Btahl told The Poet he has not been contacted by the SEC. Selce didn't return a request for comment.
All four men were named In the SEC's February motion 10 dismiss the Rodrig case "without prejudice.·
A person close to the case also told The Posllhat the SEC has been investigating "a major insider trading ring" involving
the four traders.
Khelife'slawyer, Paul Batista, called the SEC's allegation "8 fantasy-land proposition; and said he looks forward to "the
spectacle of watching the SEC try to prove it."
Rodrig's lawyer, Ira SOJ1(in, wasn't immediately available for comment.
In a court filing, the SEC has accused Rodrig, who was "vacationing on a boat in Tur1(ey" at the time of the Arch trades, of
attempling to thwart their investigation by tossing away his BlackBerry.
http://www.nypost.comlfi.printlnewslbusinesslsec_calls_swiss_to_account_vWxuaClxzrOb... 3/1212012
Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 4 of 8
P.06
r ~ R - 1 2 - 2 0 1 2 21:58
EXHIBITB
Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 5 of 8
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Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 6 of 8
P.08 MAR-12-2012 22:00
EXHIBITC
Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 7 of 8
P.09 MAR-12-2012 22:00
Page 1 of 1
When do you think you'll have documentation to prove the current SEC issue has been dismissed? Can't close
with the case open.
Debra Shultz NMLS49301
Managing Director, CMPS, Top 10
Tel: 212-318-94211 Cell: 917-757-66331 eFax: 646-792-4949
dshYIIz@ManhattanMortgage.com
The Manhattan Mortgage Co., Inc.• NMLS 1546
750 lexington Avenue, 4th FI., New Yorl<. NY 10022
I - - ~ " " " ~ r ~ ~ p - ~ 1
file:IIC:\Documents and Settings\dele4194\Local Settings\Temporary Internet FiJes\Conten... 3/12/2012
TOTAL P.09
Case 1:11-cv-04904-JPO Document 125 Filed 03/13/12 Page 8 of 8

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