Joshua David Nicholas reached a civil class-action settlement with empires.
Following “money of arms-length mediation” between the parties, Nicholas resolved.
according to the EmpiresX class action plaintiffs’ proposed settlement;
Defendant Nicholas got in touch with the plaintiffs’ attorney on July 28, 2022, and said he wanted to start settlement talks and work with them.
To ensure that Plaintiffs and the Class had the best possible opportunity of recovering money from the Nonsettling Defendants, Plaintiffs’ Counsel worked diligently over the last few weeks to negotiate this Settlement with Defendant Nicholas.
Defendant Nicholas’ proffer makes it abundantly evident that he lacks the resources to compensate Empires-X Ponzi scheme victims.
Furthermore, the restitution payments necessary are already covered by the plea bargain defendant Nicholas reached with the DOJ.
In that regard, Nicholas’ class-action settlement is more concerned with what he is aware of that with monetary gain.
But what Defendant Nicholas does have is detailed knowledge of the inner workings of the Empires-X Ponzi scheme and information that is reasonably likely to lead to additional evidence to hold Nonsettling Defendants and other third parties accountable for the Empires-X Ponzi scheme, as well as assets situated in the United States.
Nicholas has committed to working with the Plaintiff Class if the class action settlement is authorized to pursue compensation from the defendants Emerson Pires and Flavio Goncalves.
On August 29th, Nicholas’ settlement request was submitted. On August 30, the court gave preliminary clearance.
On October 27, a hearing for final approval is expected.
It is rare to have ongoing concurrent DOJ, SEC, CFTC, and associated non-regulatory procedures.
I anticipate that ultimately the DOJ, SEC, and/or CFTC will intervene to stop the civil class action. The SEC and CFTC are in touch with the Receiver appointed in the EmpiresX class-action lawsuit, according to the Receiver.
The authorities have acknowledged the complaint, but they are still deciding how to proceed with appointing a receivership.
Nicholas’ intention to enter a guilty plea was confirmed in the class-action settlement, which is an intriguing fact.
Class-action Plaintiffs contend that Nicholas contacted them about a potential settlement when they
In response to a federal indictment the U.S. Department of Justice filed against him in connection with Empires-X, he was negotiating a plea deal.
This was verified by me using the EmpiresX case docket maintained by the DOJ, where Nicholas’ criminal case was submitted to a magistrate judge for a change of plea hearing on August 29.
Nicholas’ Change of Plea Hearing was not set as of the time of publishing. I’ll keep an eye on the docket changes.