Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Kozko Dmitry
   2. Issuer Name and Ticker or Trading Symbol
Net Element, Inc. [NETE] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
EVP Bus Dev
(Last)
(First)
(Middle)
1450 SOUTH MIAMI AVENUE		 3. Date of Earliest Transaction (Month/Day/Year)
10/02/2012
(Street)

MIAMI, FL 33130		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 10/02/2012   M   94,000 A $ 0.1 25,044,100 D  
Common Stock 10/02/2012   F   37,600 D $ 0.25 25,006,500 D  
Common Stock 10/02/2012   M   50,000 A $ 0.06 25,056,500 D  
Common Stock 10/02/2012   F   12,000 D $ 0.25 25,044,500 D  
Common Stock 10/02/2012   M   40,000 A $ 0.15 25,084,500 D  
Common Stock 10/02/2012   F   24,000 D $ 0.25 25,060,500 D  
Common Stock 10/02/2012   M   40,000 A $ 0.15 25,100,500 D  
Common Stock 10/02/2012   F   24,000 D $ 0.25 25,076,500 D  
Common Stock 10/02/2012   M   19,048 A $ 0.21 25,095,548 D  
Common Stock 10/02/2012   F   16,000 D $ 0.25 25,079,548 D  
Common Stock 10/02/2012   M   12,500 A $ 0.16 25,092,048 D  
Common Stock 10/02/2012   F   8,000 D $ 0.25 25,084,048 D  
Common Stock 10/02/2012   M   11,765 A $ 0.17 25,095,813 D  
Common Stock 10/02/2012   F   8,000 D $ 0.25 25,087,813 D  
Common Stock 10/02/2012   M   18,182 A $ 0.11 25,105,995 D  
Common Stock 10/02/2012   F   8,000 D $ 0.25 25,097,995 D  
Common Stock 10/02/2012   D   25,097,995 D (1) 0 D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (Right to Buy) $ 0.1 10/02/2012   M     94,000 03/09/2012 03/09/2021 Common Stock 94,000 $ 0 0 D  
Stock Option (Right to Buy) $ 0.06 10/02/2012   M     50,000 07/31/2011 07/31/2016 Common Stock 50,000 $ 0 0 D  
Stock Option (Right to Buy) $ 0.15 10/02/2012   M     40,000 09/30/2011 09/30/2016 Common Stock 40,000 $ 0 0 D  
Stock Option (Right to Buy) $ 0.15 10/02/2012   M     40,000 10/31/2011 10/31/2016 Common Stock 40,000 $ 0 0 D  
Stock Option (Right to Buy) $ 0.21 10/02/2012   M     19,048 11/30/2011 11/30/2016 Common Stock 19,048 $ 0 0 D  
Stock Option (Right to Buy) $ 0.16 10/02/2012   M     12,500 01/31/2012 01/31/2017 Common Stock 12,500 $ 0 0 D  
Stock Option (Right to Buy) $ 0.17 10/02/2012   M     11,765 02/29/2012 02/28/2017 Common Stock 11,765 $ 0 0 D  
Stock Option (Right to Buy) $ 0.11 10/02/2012   M     18,182 04/30/2012 04/30/2017 Common Stock 18,182 $ 0 0 D  
Stock Option (Right to Buy) $ 0.37 10/02/2012   D     5,406 08/31/2011 08/31/2016 Common Stock 5,406 (2) 0 D  
Stock Option (Right to Buy) $ 0.6 10/02/2012   D     3,333 12/31/2011 12/31/2016 Common Stock 3,333 (2) 0 D  
Stock Option (Right to Buy) $ 0.25 10/02/2012   D     10,297 03/31/2012 03/31/2017 Common Stock 10,297 (2) 0 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Kozko Dmitry
1450 SOUTH MIAMI AVENUE
MIAMI, FL 33130		   X     EVP Bus Dev  

Signatures

 /s/ Dmitry Kozko   10/03/2012
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) These shares were canceled pursuant to the Agreement and Plan of Merger, dated as of June 12, 2012, between Cazador Acquisition Corporation Ltd., a Cayman Islands limited corporation, and the Issuer, in exchange for the right to receive 0.025 of a share of Cazador common stock in exchange for each share of the Issuer's common stock.
(2) These stock options were canceled in consideration for payment of $2,000 by the Issuer to the reporting person.

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