UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No.  15163 / November 21, 1996

SECURITIES AND EXCHANGE COMMISSION V. JOSEPH A. BREMONT,  JIMMY B. SANCHEZ, COMCAR INTERNATIONAL, LTD.,  COMMERCIAL CAPITAL RESOURCES, INC., LOOMIS LTD.,  MICHAEL R. SPECTOR, AND R.P.S. FINANCIAL GROUP, INC., 96 Civ. 8771 (S.N.Y.)(LAK)

 The Securities and Exchange Commission today filed an action in federal court in Manhattan alleging that two individuals and two entities fraudulently obtained more than $2.1 million since 1993 by engaging in a scheme involving fictitious  prime bank  securities.  According to the Complaint, the defendants have diverted overseas more than $1.7 million of the money that they illegally obtained from investors, including residents of New Hampshire, Indiana, and a group of cadets at the United States Military Academy at West Point.  Named in the Complaint were:

     Joseph A. Bremont, a 57 year old resident of Ocala, Florida; 

     Comcar International, Ltd., a Bahamian company; 

     Commercial Capital Resources, Inc., a Florida corporation; and,

     Jimmy B. Sanchez, a resident of Texas.

The Complaint names as relief defendants Michael J. Spector, a New Hampshire accountant, R.P.S Financial Group, Inc., a New Hampshire corporation, and Loomis Ltd., an entity through which Joseph A. Bremont allegedly transferred funds to Jimmy B. Sanchez.

The Complaint alleges that: Joseph A. Bremont and Jimmy B. Sanchez, directly or indirectly, falsely represented to investors that they and Comcar International Ltd. and Commercial Capital Resources, Inc. would use the investors' money to arrange the purchase and sale of so- called "prime bank securities" which would yield enormous profits for the investors.  Although the prime bank securities described by the defendants do not exist, Joseph A. Bremont, using language that had been provided to him by Jimmy B. Sanchez, prepared and signed contracts representing that he, Comcar International Ltd., and Commercial Capital Resources, Inc. would use investors money to obtain the issuance of "purchase orders" for prime bank securities.  These purchase orders, which also do not exist, purportedly would permit the investors, or "collateral providers"

-- sellers of prime bank securities -- located by the investors, to sell prime bank securities to buyers who would be located by Joseph A. Bremont and Jimmy B. Sanchez.  Joseph A. Bremont promised investors that upon completion of the transaction they would be paid a percentage of the face value of the prime bank securities sold, thereby earning returns of up to 2000 percent on their initial investment.  Joseph A. Bremont further represented to the investors that they would also share in additional profits from subsequent resales of the prime bank security in a secondary market.  No such secondary market for prime bank securities exists.

In each instance, Joseph A. Bremont, Jimmy B. Sanchez, Comcar International Ltd. and Commercial Capital Resources, Inc. fraudulently withdrew the investors  money from an escrow account by either fabricating a default by the investors or arranging for the issuance of a counterfeit purchase order.  Joseph A. Bremont transferred at least $1.6 million to Comcar International Ltd. and at least $162,000 to Commercial Capital Resources, Inc.  Joseph A. Bremont and Commercial Capital Resources, Inc. subsequently transferred to Jimmy B. Sanchez, directly and through Loomis Ltd., at least $400,000 of these improperly obtained investor funds.  In addition, at least $97,000 obtained from investors was paid to R.P.S Financial Group, Inc. as compensation for Michael J. Spector s services as a finder of investors.

In its Complaint, the Commission alleges that the defendants violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.  As to the defendants, the Commission seeks permanent injunctions against future violations of the anti-fraud provisions, disgorgement of defendants' ill-gotten gains plus prejudgment interest, and civil penalties.  The Commission is also seeking a freeze of the defendant s assets and an accounting. As to the relief defendants, the Commission is seeking a final judgment requiring them to disgorge the funds that they received which the Defendants had fraudulently obtained from investors, and to pay prejudgment interest.