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UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE
NO. 16496 \ March 31, 2000
Securities and Exchange Commission v. Highland
Financial Corporation, et al. #4-99-CV-0719-D,
USDC, NDTX (Fort Worth Division)
The U.S. Securities and Exchange Commission ("Commission")
announced today that on March 28, 2000, Judge
Sidney A. Fitzwater, United States District Judge
for the Northern District of Texas, entered a
Final Judgment of Permanent Injunction and Other
Equitable Relief against Defendant Robert H. Alberding.
Judge Fitzwater permanently enjoined Mr. Alberding
from future violations of the antifraud provisions
of the federal securities laws. Judge Fitzwater
further ordered Mr. Alberding to pay disgorgement
of $125,000, representing his gains from the conduct
alleged in the Commission's Complaint, and pay
prejudgment interest of $4,986.20. In addition,
Mr. Alberding is ordered to pay a $10,000 civil
money penalty.
On September 2, 1999, Judge Fitzwater granted
the Commission's request for an emergency asset
freeze, the appointment of a Receiver, and other
equitable relief to halt a fraudulent "prime
bank" investment scheme. The Commission's
Complaint charges that from April 1998 through
August 1998, Kay L. Cahill, a convicted felon,
and the other defendants, raised approximately
$9.5 million from 10 investors nationwide for
a purported "trading program" in foreign
bank instruments promising returns of as much
as 1,000%. In reality, the trading program did
not exist and investor funds were used to make
"Ponzi" payments, in that funds from
later investors were used to pay purported profits
to earlier investors. In addition, investor funds
were misappropriated for certain defendants' personal
use. For example, Cahill purchased an 11,000-square-foot
house in Tyler, Texas, at a cost of approximately
$1.2 million, and spent investor funds for moving
and travel expenses, and to purchase furniture
and automobiles.
According to the Commission's Complaint, Mr.
Alberding, age 50 and a resident of Scottsdale,
Arizona, is a self-employed sales and marketing
consultant who conducted business under the name
CanAmerican Business Capital, Inc. Alberding's
role in the fraud was to solicit investors for
the investment program in exchange for commissions.
http://www.sec.gov/litigation/litreleases/lr16496.htm
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