Victims of the Tricoastal Capital fraud will have to wait a bit longer before they see any money returned by regulators.

The U.S. Securities and Exchange Commission’s (SEC) enforcement division has been given until Jan. 20, 2015 to come up with a plan for returning the US$1.4 million recovered in the case to investors. In an order granting an extension, the SEC indicates that its enforcement staff need more time to develop a distribution plan.

Earlier this month, the former Canadian fund manager who ran Tricoastal Capital Partners LLC and Tricoastal Capital Management Ltd., Keith Summers, was sentenced to three years in jail and ordered to pay US$4.3 million in restitution by an Ontario court after he pled guilty to one count of fraud over $5,000 and one count of uttering a forged document. (See Ex fund manager gets jail time, investmentexecutive.com, October 8, 2014.)

Summers admitted to selling Tricoastal securities; and to defrauding investors by misusing their funds, and for not disclosing his trading losses. He also admitted that he issued false financial statements as part of the scheme.

Back in the summer, the SEC settled with Summers, banning him from the U.S. industry, and agreeing that he should pay disgorgement of US$4.2 million to the SEC. That disgorgement obligation was deemed satisfied by turning over US$1.4 million from a U.S. brokerage account, which occurred on Aug. 20, according to the SEC’s order; and, by the restitution orders imposed in Canadian proceedings.