UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Litigation
Release No. 16134/ MAY 11, 1999
SECURITIES
AND EXCHANGE COMMISSION v. RICHARD J. BRIDEN,
EMPOWERMENT FUNDING GROUP, LLC AND INFOPRO GROUP,
LTD (United
States District Court for the District of Massachusetts,
99CV11009RCL)
The Commission announced the filing today of
a Complaint in the United States District Court
for the District of Massachusetts against Richard
J. Briden ("Briden"), an Ashland, Massachusetts
business consultant and two corporations Briden
founded, Empowerment Funding Group, LLC ("Empowerment")
and Infopro Group, Ltd. ("Infopro").
The Commission’s Complaint alleges that Briden
conducted a fraudulent offering of prime bank
securities over the Internet. He also sold interests
in another prime bank trading program to seven
investors. As the Commission and several courts
have stated, prime bank instruments do not exist.
By this conduct, Briden violated the registration
and antifraud provisions of the federal securities
laws.
The Commission’s Complaint alleges that, since
at least early 1998, Briden, through his two companies,
offered over the Internet prime bank trading programs
which required a $1 million minimum investment.
Briden used Internet websites, electronic bulletin
board postings and Internet e-mails to offer the
programs. Briden falsely promised investors as
much as a 100% return per week in risk-free trading
programs. Briden claimed that no funds would leave
the investor's bank account. The Complaint alleges
that Briden stood to earn a commission of up to
30% of the investor’s return. Briden convinced
at least three individuals to provide him with
proof of $1 million to invest and signed powers
of attorney giving him the authority to "commit"
the funds to invest in a prime bank trading program.
Briden never successfully invested any funds in
these "Million Dollar Programs."
The Complaint also alleges that Briden convinced
seven investors, three of whom were from Massachusetts,
to invest $295,000 in another "risk-free"
prime bank trading program. This program was known
as "Acorn," symbolic of the fact that
it was willing to accept investments of less than
$1 million. The Complaint alleges that Briden
promised the investors a return of 640% per 40
week period. Briden was to earn 30% of any returns.
In October 1998, Briden wired the seven investors'
money to a bank account in the name of Mutual
Assets Limited ("Mutual") in Guernsey
in the Channel Islands. The investors have not
received any of their promised return.
The Commission alleges that Briden has explained
the failure to pay returns with excuses such as,
bank holidays, the sickness of some of the traders,
bank mix-ups and various other reasons. According
to the Commission’s Complaint, however, the funds
are now beyond Briden’s control and never will
be invested in any legitimate manner.
The Commission’s Complaint alleges that in connection
with this scheme, Briden, Empowerment and Infopro
violated Sections 5(c) and 17(a) of the Securities
Act of 1933 ("Securities Act"), Sections
10(b) and 15(a) of the Securities Exchange Act
of 1934 ("Exchange Act"), and Rule 10b-5
thereunder. The Commission seeks permanent injunctions
prohibiting the defendants from violating these
provisions. In addition, the Commission seeks
the imposition of civil monetary penalties pursuant
to Section 20(d) of the Securities Act and Section
21(d)(3) of the Exchange Act .
The investigation is continuing.
http://www.sec.gov/litigation/litreleases/lr16134.htm
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