This website has been established to provide general information related to The Children’s Internet Fair Fund, the Fair Fund developed in the United States Securities and Exchange Commission ("SEC") Proceedings.

The administration of the Fair Fund is governed by a Distribution Plan (“Plan”) which was approved by the Court on January 22, 2024.  A copy of the approved Plan, which contains a description of eligibility and other conditions of participation, can be found on the Case Documents tab.

                                                                                                                                                             Background

The United States Securities and Exchange Commission (“SEC” or “Commission”) developed a Fair Fund ("The Children’s Internet Fair Fund") in its proceeding against The Children's Internet, Inc., Nasser V. Hamedani, Sholeh A. Hamedani, Peter A. Perez, Cort L. Poyner, Two Dog Net, Inc. (collectively, the “Defendants”).   

On September 27, 2006, the Commission filed a complaint (“Complaint”) against the Defendants. In the Complaint, the Commission alleged that, from February 2002 through June 2005, the Hamedanis purportedly, on behalf of TCI, fraudulently obtained approximately $5.5 million from public investors. The Hamedanis diverted a significant amount of the investors’ money to pay personal expenses and hundreds of thousands of dollars in undisclosed commissions to two stock promoters, Perez and Poyner.

The Plan seeks to Compensate investors who were harmed by the Defendants’ conduct in connection with the fraudulent sales of securities in The Children’s Internet, Inc. (“TCI”).  Investors will be compensated for their losses on TCI shares that were purchased between January 1, 2002 through December 31, 2005, inclusive (the “Relevant Period”).

Based on information obtained by the Commission during its investigation and the review and analysis of applicable records, the Commission has reasonably concluded that it has all records necessary to calculate each investor’s harm.  As a result, the Fair Fund is not being distributed according to a claims-made process.

On March 9, 2017, the Court appointed KCC Class Action Services, LLC, (“KCC”) as the Distribution Agent for the Fair Fund (the “Distribution Agent”). The Distribution Agent is responsible for administering the Fair Fund in accordance with the Distribution Plan.

On January 22, 2024, the Court approved the Distribution Plan for The Children’s Internet Fair Fund (the "Plan").