UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE
NO. 16341 / October 25, 1999
Securities and Exchange Commission v. Benjamin Franklin Cook,
et al.
#3-99CV05701-R, USDC, NDTX (Dallas Division)
On October 20, 1999, Benjamin Franklin Cook of
Carefree, Arizona was located and arrested by
U.S. Marshals in a Las Vegas, Nevada casino. A
warrant has been issued for Cook's arrest on October
8, 1999, by Judge Jerry Buchmeyer of the United
States District Court for the Northern District
of Texas, Dallas Division, after finding that
Benjamin Franklin Cook was in contempt of the
Court.
On March 16, 1999, the Securities and Exchange
Commission filed a proceeding against sixteen
(16) individuals and entities, including Cook
and his related company, Dennel Finance Limited.
The Commission alleges that Cook engaged in a
fraudulent scheme to offer and sell unregistered
"prime bank" securities throughout the
United States. The Commission further alleges
that Cook targeted religious groups and persons
investing retirement funds, and that he cheated
more than 100 investors nationwide of $30 million
in non-existent "prime bank" note programs.
In connection with the Commission's filing, the
Court ordered Cook to promptly deliver assets
in his control to a court appointed receiver,
and ordered that Cook refrain in any way from
disturbing those assets. Despite the Court's Order,
Cook failed or refused to deliver the assets,
which included seven (7) Cashier's Checks totaling
$694,850.
Subsequently, on April 2, 1999, the Court entered
a Preliminary Injunction restraining Cook from
making any payment or expenditure of funds and
from making any false or untrue statements to
investors. In addition, the Court further ordered
Cook to repay those funds obtained from investors
in his illegal "prime bank" scheme.
Because of Cook's failure to appear before the
Court pursuant to an order to show cause, his
failure to deliver the assets, and his failure
to refrain from interfering with the Commission's
subpoenas directed to other persons, Judge Buchmeyer
ordered Cook jailed until such time that he complies
with the Court's orders, including the return
of assets. Judge Buchmeyer also ordered that Cook
be fined an additional $50,000 for each act of
interference with the Commission's subpoenas directed
to other persons. Additionally, the Court ordered
that all pleadings filed by Cook denying the allegations
of the Commission be stricken in their entirety.
Cook is being detained by federal authorities
and is expected to be transported to Dallas, where
he will be incarcerated.
http://www.sec.gov/litigation/litreleases/lr16341.htm
|
