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UNITED STATES SECURITIES
AND EXCHANGE COMMISSION
Litigation Release
15557 / November 12, 1997
SECURITIES AND
EXCHANGE COMMISSION V. JEROME C. PINCKNEY, RICHARD
L. ARNOLD, DONALD E. ELDER, FERNANDO CRUZ, SHAUN K. R. MAXWELL,
ANTHONY
BUKOVICH AND SIX CAPITAL CORPORATION, Civil
Action No. 7:95-CV-122-BR-1
(E.D.N.C.)
The Securities
and Exchange Commission announced that on November
4, 1997, the Honorable W. Earl Britt, United States District Judge
for the
Eastern District of North Carolina, entered
an order of permanent
injunction enjoining defendants Six Capital
Corporation (“Six Capital”) and
Anthony Bukovich (“Bukovich”), president
and controlling shareholder of Six
Capital, from further violations of Section
17(a) of the Securities Act of
1933 relating to prime bank fraud. The
decision followed a trial which
commenced on October 20, 1997.
The Commission’s
complaint, filed on August 23, 1995, alleged that Bukovich, Six Capital and others violated the antifraud statute
by offering for
sale investment contracts which were part of a
prime bank scheme. The Commission alleged and the Court found that Bukovich and Six
Capital
attempted to obtain funds from investors
in two different schemes by
misrepresenting or failing to disclose
material facts in connection with
the offering of fraudulent, nonexistent
prime bank securities. Among the
misrepresentations made by Bukovich and
Six Capital, the Court found that
the defendants misrepresented to investors
that the trading program
involved trading in supposed “bank guarantees”
issued by the top 15 banks
in western Europe, that the investment
in the bank guarantee program was a
‘clean, neat, safe, legitimate transaction’,
and that they had sold prime
bank instruments in the past. Bukovich
and Six Capital, while investing
nothing of their own, stood to receive
50% of the trading profits on each
trade made. For more information, see L.R.
14600, L.R. 15231, L.R.15287,
L.R. 15358.
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