 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17119 / September 6, 2001
SEC
v. Donald Barry Tamres, Civil Action No. IP-99-1767-C-Y/G
(S.D. Indiana)
On
August 23, 2001, the Honorable Richard L. Young,
U. S. District Judge for the Southern District
of Indiana, ordered that Defendant Donald Barry
Tamres of Carmel, Indiana pay $110,000 in civil
penalties for running a fictitious prime bank
scheme. Judge Young previously had granted the
SEC's motion for summary judgment and permanent
injunction against Tamres and certain relief defendants
and ordered Tamres to repay $2.3 million to investors.
In
this case, Judge Young found that from August
1998 through February 1999, Tamres had run a fictitious
prime bank investment scheme called the Asset
Enhancement Program. Judge Young found that Tamres
misrepresented that the prime bank "investment"
he was promoting would provide a risk-free return
of $1,500,000 in six weeks for an initial investment
of $30,000. Tamres invoked the name of the United
States Federal Reserve to cloak his program with
an air of legitimacy. Tamres also misrepresented
to investors that the investments were guaranteed
by a prime European insurance company. Instead
of investing the funds entrusted to him, Tamres
used the funds to pay off other investors or to
buy houses, cars and other items for himself and
his family. Based upon his findings, Judge Young
held that Tamres violated the antifraud and registration
provisions of the federal securities laws. As
a result, Judge Young permanently enjoined Tamres
from violating the federal securities laws and
ordered Tamres to disgorge $2.3 million of his
ill-gotten gains and pay a civil penalty of $110,000.
Information about prime bank investment schemes
is available on the SEC's web site (www.sec.gov).
Judge
Young has appointed James Knauer of Kroger, Gardis
& Regas, 111 Monument Circle, Suite 900, Indianapolis,
Indiana 46204, as receiver in this case.
See
previous Litigation Release No. 16369, November
23, 1999.
from:
http://www.sec.gov/litigation/litreleases/lr17119.htm
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