 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17208 / October 25 , 2001
U.S.
Securities and Exchange Commission v. James R.
Harrold, Franklin Management and Consulting, LLC,
Accipter, LLC, Franklin Asset Management and Consulting,
LLC, Franklin Management and Consulting, Inc.,
and Concord Development Group, LLC., U.S. District
Court for the Southern District of Indiana, Cause
No. IP 01-1318-C H/K (S.D. Indiana 2001)
Receiver
Appointed in Prime Bank Case
The
U.S. Securities and Exchange Commission ("Commission")
announced that on October 19, 2001, the Honorable
Judge David F. Hamilton of the United States District
Court for the Southern District of Indiana appointed
James A. Knauer, a partner at the law firm of
Kroger, Gardis & Regas, LLP in Indianapolis,
Indiana, as the receiver in this matter.
On
September 7, 2001 the Commission filed a complaint
alleging that James R. Harrold ("Harrold")
and the Entity Defendants were violating the registration
and antifraud provisions of the federal securities
laws by operating a prime-bank scheme. On the
same day, Judge Hamilton entered a Temporary Restraining
Order freezing three accounts controlled by Harrold.
On September 10, 2001, Judge Hamilton entered
a Temporary Restraining Order freezing all of
Harrold and the Entity Defendants' assets. On
September 14, 2001, Harrold and the Entity Defendants
consented to the entry of an Order of Permanent
Injunction, which continued the asset freeze and
enjoined them from engaging in violations of Sections
5(a), 5(c) and 17(a) of the Securities Act of
1933, Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 thereunder. Harrold
and the Entity Defendants consented to the entry
of the permanent injunction, without admitting
or denying the allegations of the complaint.
Under
the Court's Receiver Order, Mr. Knauer is empowered
to take possession of all of Harrold and the Entity
Defendants' assets and to search for any hidden
or undisclosed assets. Mr. Knauer is required
to file an inventory and appraisal of all property
and assets of Harrold and the Entity Defendants
within thirty (30) days, or such longer time as
the Court may approve, of his appointment.
Investors
or other interested parties should direct any
questions to Mr. Knauer at Kroger, Gardis &
Regas, LLP, 111 Monument Circle, Suite 900, Indianapolis,
Indiana, 46204-5125, telephone (317) 692-9000,
fax (317) 264-6832. The firm's website is: http://www.kgrlaw.com.
from:
http://www.sec.gov/litigation/litreleases/lr17208.htm
|
