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UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE
NO. 16224 / July 28, 1999
Securities and Exchange
Commission v. Alamin, Inc., Financial Resources,
George L. Vaughn and Curt Arvidson, Civil Action
No. 2:99CV-576J (USDC Utah)
A civil action has been filed seeking a temporary
restraining order against Alamin, Inc., Financial
Resources, George L. Vaughn and Curt Arvidson
in connection with a scheme in which the defendants
have offered to sell at least $649 million in
interests in a prime bank trading program to at
least 23 municipalities located primarily in the
western United States. None of these municipalities
has actually invested in the scheme.
The complaint alleges the defendants required
interested municipalities to provide lists of
projects those governments would like to fund
using the proceeds which would be earned from
the trading program; the defendants then approved
investment in the program in the amount equal
to the cost of the municipal projects. It is further
alleged that the defendants required the municipalities
to place liquid assets into a trust which would
be administered by the defendants; the defendants
would then use the assets as collateral for funds
which would be invested in the prime bank trading
program yielding returns of up to 130% a month
with no risk of loss. The complaint also alleges
the defendants represented the program was endorsed
by the International Monetary Fund, which supposedly
was a participant in the program. The complaint
alleges that Vaughn and Arvidson solicited investments
through personal contact with the elected officials
of, primarily, smaller cities and counties in
Utah, Idaho, California, Washington and Oregon,
although municipalities in Oklahoma, North Dakota,
Ohio and South Carolina were also approached about
investing in the program.
The Commission alleges that through their conduct,
the defendants are violating the securities registration
and antifraud provisions of Sections 5(c) and
17(a) of the Securities Act of 1933.
http://www.sec.gov/litigation/litreleases/lr16224.htm
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