SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14673 / October 2, 1995  

SEC v. Robert Cord Beatty, Leroy Max Campbell, Lyle John Boss, Leslie John Gray, and Thelma Mae Cannon Caliebe, Civil Action No.

2:95CV 0886S (USDC UT).

The Securities and Exchange Commission announced the filing of a complaint in the United States District Court for the District of Utah on September 25, 1995, seeking permanent injunctive relief, civil penalties, and disgorgement against Robert Cord Beatty, Leroy Max Campbell, Lyle John Boss, Leslie John Gray, and Thelma Mae Cannon Caliebe.  The defendants are alleged to have offered and sold "prime bank" instruments which they represented as being "risk free" and which would earn the investors 10 percent to 25 percent profit per month.

The Commission's complaint alleges that from February 1992 until February 1993, the defendants, individually and through various entity names, offered and sold a fraudulent investment for which funds were raised from investors purportedly to buy and sell putative "prime bank" instruments such as documentary letters of credit, standby letters of credit, prime bank notes, or prime bank guarantees issued from the "top 100 world banks."   

The complaint also alleges that in connection with the offer and sale of these instruments, the defendants falsely represented that the transactions were "risk free."  Beatty, Campbell, Boss, Gray and Caliebe received at least $2 million from investors.  In fact, there is no such instrument as a "prime bank note" and no prime bank instruments have been purchased.  Instead, according to the complaint, the defendants diverted the funds to their own uses without informing the investors.

As a result of this activity, the complaint alleges, Beatty, Campbell, Boss, Gray, and Caliebe have violated the registration and antifraud provisions of the federal securities laws.   

                       NEWS DIGEST SUMMARY

COMPLAINT FOR PERMANENT INJUNCTION FILED AGAINST ROBERT CORD BEATTY, LEROY MAX CAMPBELL, LYLE JOHN BOSS, LESLIE JOHN GRAY, AND THELMA MAE CANNON CALIEBE

     The Commission filed a complaint in the United States District Court for the District of Utah on September 25, 1995, against Robert Cord Beatty, Leroy Max Campbell, Lyle John Boss, Leslie John Gray, and Thelma Mae Cannon Caliebe.        The Commission's complaint alleges violations of the registration and antifraud provisions of the federal securities laws in connection with the offer and sale of nonexistent prime bank instruments such as documentary letters of credit, standby letters of credit, prime bank notes, or prime bank guarantees, issued from the "top 100 world banks."  According to the complaint, the defendants falsely represented that the transactions were "risk free" and would earn a return of 10 percent to 25 percent monthly. The complaint alleges that instead, the defendants diverted most of the $2 million raised from investors to their own uses without informing the investors.      The complaint seeks permanent injunctive relief, disgorgement and civil monetary penalties.  [SEC v. Robert Cord Beatty, et al. (USDC UT, Civil Action No. 2:95CV 0886S)] Attorney to contact:  xxx                       Salt Lake District Office Telephone: