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Securities
and Exchange Commission
Litigation Release
No. 16369 / November 23, 1999
Securities and Exchange
Commission v. Donald Barry Tamres, U.S. District Court for the Southern of Indiana, Civil Action
No. I P99 - 1767 C - Y/G (S.D. Ind. November 16,
1999)
On November 19, 1999, the Honorable Richard L.
Young of the U.S. District Court for the Southern
District of Indiana issued an order freezing the
assets of Donald Barry Tamres of Carmel, Indiana.
Three days prior, the SEC filed a complaint alleging
that Tamres operated a fictitious Prime Bank investment
program in which he misappropriated approximately
$2.8 million from 25 investors.
The Complaint alleges that Tamres violated the
federal securities laws through a fictitious Prime
Bank investment called the Asset Enhancement Program.
The Complaint alleges that Tamres described the
investment in offering materials as a "low
entry" "high yield trading program"
in which an approximate $35,000 initial investment
would yield $1,750,000 in six weeks. Tamres also,
in the materials, claimed that the program was
associated with the Federal Reserve and is guaranteed
by an insurance policy issued by "a top 4
European Insurance Company." According to
the Complaint, approximately 25 investors invested
a total of about $2.8 million in the Asset Enhancement
Program. In fact, this type of investment program
does not exist. The Complaint alleges that Tamres
misappropriated the investors' funds.
According to the Complaint, Tamres, instead of
using the funds raised to invest in the Asset
Enhancement Program or similar investments, used
the funds to, among other things: 1) purchase
several homes, including the property and home
located at 3552 Hintocks Circle; 2) purchase several
cars; 3) purchase personal items; 4) pay personal
expenses; 5) furnish the homes; 6) purchase corporate
boxes and tickets to the Indiana Pacers; and 7)
pay returns to other investors.
The Complaint alleges that Tamres violated Sections
5(a) and 17(a) of the Securities Act of 1933 and
Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 under the Exchange Act.
http://www.sec.gov/litigation/litreleases/lr16369.htm
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