UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE
NO. 16245 / August 5, 1999
Securities and Exchange
Commission v. Alamin, Inc., Financial Resources,
George L. Vaughn and Curt Arvidson, Civil Action
No. 2:99CV-576J (USDC Utah)
On August 4, 1999, Bruce S. Jenkins, United States
District Judge for the District of Utah, issued
a Temporary Restraining Order halting the fraudulent
activities of Alamin, Inc., Financial Resources,
George L. Vaughn, and Curt Arvidson. The Commission's
Complaint alleges that the defendants solicited
at least 23 municipalities located primarily in
the western United States, offering to sell over
$649 million in interests in a prime bank trading
program.
While none of the municipalities has invested
in the scheme, the Commission alleges that the
defendants violated Sections 5(c) and 17(a) of
Securities Act of 1933 by making offers through
their fraudulent misrepresentations. Alamin, Inc.,
Financial Resources, Vaughn, and Arvidson solicited
municipalities into putting liquid assets into
a trust and which would be administered by the
defendants. The defendants claimed they would
use the assets as collateral in a prime bank trading
program, which was endorsed by the IMF and would
guarantee returns of 130% a month with no risk
of loss. The Commission alleges that the prime
bank schemes do not exist and that the defendants
misrepresented the risk of loss and the returns
promised.
The Court has set a hearing on August 16, 1999
for the Commission's requests for a Preliminary
Injunction.
http://www.sec.gov/litigation/litreleases/lr16245.htm
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