 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17318 / January 16, 2002
SECURITIES
AND EXCHANGE COMMISSION v. PHILIP J. YODER, Civil
Action No. 01-C-9426 (N.D. Ill.)
CIVIL
CONTEMPT HEARING SCHEDULED AGAINST PHILIP J. YODER
FOR FAILURE TO COMPLY WITH SEC SUBPOENAS
The
Securities and Exchange Commission (Commission)
announced that on January 8, 2002, the Honorable
Suzanne B. Conlon of the United States District
Court for the Northern District of Illinois ordered
Philip J. Yoder (Yoder) to appear and show cause
why he should not be held in civil contempt for
failing to produce documents and give testimony
pursuant to the court's December 13, 2001 order.
The December 13, 2001 order arises out of a subpoena
enforcement action the Commission filed against
Yoder, a resident of Goshen, Indiana, for his
failure to comply with two Commission investigative
subpoenas requiring the production of documents
and testimony. Pursuant to the court's order and
agreement of the parties, Yoder was required to
produce documents by December 19, 2001 and appear
for testimony on December 27, 2001. Yoder failed,
however, to appear for testimony or produce documents
pursuant to the order. Consequently, the Commission
filed a motion for entry of an order to show cause
why Yoder should not be held in civil contempt
for failing to obey the court order.
The
subpoenas were issued in a non-public investigation
into whether Yoder and others participated in
one or more fraudulent investment schemes. According
to papers filed with the court, the Commission
is investigating whether Yoder, through an entity
called All the Way to the Top (ATWTTT), may have
fraudulently raised over $700,000 from approximately
160 investors by misrepresenting the nature and
risk of the investment. In addition, the court
papers alleged that Yoder may be involved in a
prime bank scheme by selling mid-term notes trading
on overseas markets which allegedly generate huge
returns for the investor. These instruments, however,
do not exist. The Commission's investigation will
seek to determine whether Yoder may have fraudulently
raised over $1.2 million and made over $18 million
in connection with such trades.
The
judge has set the show cause hearing for January
29, 2002.
For
more information about prime bank frauds, visit
the SEC's website at http://www.sec.gov/divisions/enforce/primebank.shtml.
http://www.sec.gov/litigation/litreleases/lr17318.htm
|
