|
UNITED STATES SECURITIES
AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 14660 / September 29, 1995
SEC v. Jerome E. Pinckney, Richard L. Arnold, Donald E. Elder,
Fernando Cruz, Shaun K.R.
Maxwell, Anthony Bukovich, Jr., and Six
Capital
Corporation, Civil Action No. 7:95-CV-122-BR(1)
(E.D.N.C.)
The Securities
and Exchange Commission announced the filing
of a complaint on August 24, 1995 in the United States District
Court for the Eastern District of North Carolina seeking
preliminary and permanent
injunctions and other equitable relief
against
Jerome E. Pinckney of Wilmington, North Carolina,
Richard
L. Arnold of Raleigh, North Carolina, Donald E. Elder
of Hilton
Head, South Carolina, Fernando
Cruz of Linden, New Jersey, Shaun
K.R. Maxwell of Auburn, Washington, Anthony Bukovich, Jr. of
Tampa, Florida, and Six Capital Corporation, a Florida
corporation, for violations
of the antifraud provisions of the
federal
securities laws.
The complaint
alleges that from at least April 1994 to
September 1994, the defendants defrauded investors by making
numerous misrepresentations and omissions of material
fact in
connection with the offer
of two investment contracts based on
the
purchase and sale of so-called "prime bank
securities." The
complaint alleges that the first offer promised investors
a 9% weekly
return, guaranteed by a top five United States
bank or
trust, and required a $10 million minimum investment
which would
remain
100% safe in the investors' bank account. The
complaint
further alleges that several defendants offered a second
prime bank
investment requiring an $870,000 minimum investment
which was purportedly to be used to purchase and sell discounted,
$1 million
guarantees issued by the top fifteen banks in
western
Europe. The second offer, which was interrupted by the
staff's
investigation,
promised that the bank guarantees would be resold to a major U.S. brokerage firm for no less than $925,000. In
both schemes, investors were asked to execute a Limited
Power of
Attorney
providing access to their funds.
The Honorable
W. Earl Britt, United States District Judge
for the Eastern District of North Carolina, has scheduled a
hearing on the Commission's applications for October
3, 1995, at
1:00
p.m.
|
