 UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17055 / June 29, 2001
SEC
v. Terry V. Koontz, et al., Civil Action No. 98cv11904NG
(D. Mass., Sept. 17, 1998)
United
States v. Terry V. Koontz, Action No. 8:00-CR-341-T-24F
(M.D.Fl., Sept. 20, 2000)
The
Securities and Exchange Commission ("Commission")
announced today that Judge Nancy Gertner of the
United States District Court for the District
of Massachusetts has entered, by consent, final
judgments permanently enjoining Jeffrey A. DeVille
and Mykael Deville from future violations of the
antifraud and registration provisions of the federal
securities laws. Jeffrey A. DeVille was formerly
a registered representative associated with World
Marketing Alliance, Inc. The DeVilles conducted
a prime bank/Ponzi scheme with Terry V. Koontz
and others in which they induced more than 80
investors in 16 states to invest over $20 million
in a fictitious "international bank debenture
trading" program called Private Pool, LLC.
In addition to the permanent injunctions, the
Court ordered the DeVilles to pay disgorgement,
which includes the forfeiture of various assets
the DeVilles purchased with proceeds of the fraud,
including real estate, automobiles, jewelry, and
a boat. The Court also entered, by consent, a
final judgment against relief defendant Purr Trust
ordering Purr Trust to pay disgorgement jointly
and severally with the DeVilles. Based on their
demonstrated financial inability to pay, the Court
waived partial payment of disgorgement and prejudgment
interest by the DeVilles and Purr Trust and did
not impose a civil penalty against the DeVilles.
The Commission also entered an administrative
order permanently barring Jeffrey DeVille from
associating with a broker or dealer.
The
Commission also announced that in a related criminal
proceeding Terry V. Koontz was sentenced in Tampa,
Florida, to 15 years and eight months in prison
for his role in orchestrating and conducting the
scheme together with the DeVilles and others.
Koontz had previously pled guilty in Tampa to
charges of conspiracy, securities fraud, and wire
fraud relating to the $20 million Private Pool
scheme and a follow-up prime bank/Ponzi scheme
in which he orchestrated the sale of an additional
$3 million of fraudulent securities. The charges
were previously filed by the U.S. Attorney's Office
for the Middle District of Florida (Tampa) in
a parallel criminal proceeding.
The
Commission filed its emergency action in the U.S.
District Court for the District of Massachusetts
against Koontz, the DeVilles, Purr Trust, and
others on September 17, 1998, alleging violations
of Sections 5(a), 5(c) and 17(a) of the Securities
Act of 1933 and Sections 10(b) and 15(a) of the
Securities Exchange Act of 1934 and Rule 10b-5
thereunder. The DeVilles consented, without admitting
or denying the allegations of the Commission's
complaint, to the entry of final judgments permanently
enjoining them from violating Sections 5(a), 5(c)
and 17(a) of the Securities Act of 1933 and Sections
10(b) and 15(a) of the Securities Exchange Act
of 1934 and Rule 10b-5 thereunder. The Commission's
action is continuing as to the remaining defendants
and relief defendants.
For
further information about the Commission's emergency
action, see Lit.
Rel. No. 15892.
from:
http://www.sec.gov/litigation/litreleases/lr17055.htm
UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16927 / March 8, 2001
SEC
v. Terry V. Koontz, et al., Civil Action No. 98cv11904NG
(D. Mass., Sept. 17, 1998)
United
States v. Terry V. Koontz, Action No. 8:00-CR-341-T-24F
(M.D.Fl., Sept. 20, 2000)
United
States v. Jeffrey A. DeVille, Action No. 8:00-CR-56-T-23C
(M.D.Fl., Feb. 23, 2000)
United
States v. Richard J. Fulcher, Action No. 8:00-CR-23-T-23B
(M.D.Fl., Jan. 13, 2000)
The
Securities and Exchange Commission ("Commission")
announced today that on March 2, 2001, Richard
J. Fulcher was sentenced in Tampa, Florida, to
two years in prison for his role in a prime bank/Ponzi
scheme conducted by Terry V. Koontz, Jeffrey A.
DeVille, and others. The Commission also announced
that on January 5, 2001, Koontz pled guilty in
Tampa to charges of conspiracy, securities fraud,
and wire fraud relating to the prime bank/Ponzi
scheme in which he orchestrated the sale of $23
million of fraudulent securities. The charges
were previously filed by the U.S. Attorney's Office
for the Middle District of Florida (Tampa). In
addition to pleading guilty, Koontz agreed to
forfeit various assets purchased with proceeds
of the fraud. Koontz is scheduled to be sentenced
on April 6, 2001. The Commission also announced
that on January 31, 2001, DeVille was sentenced
to two years in prison for his role in the scheme.
The
charges arise out of a vast prime bank Ponzi scheme
investigated by the Commission. Koontz, DeVille,
Fulcher, and others conducted this scheme, in
which they induced more than 80 individuals in
16 states to invest over $20 million in a fictitious
"international bank debenture trading"
program called Private Pool, LLC. The Commission
filed its emergency action in the U.S. District
Court for the District of Massachusetts against
those defendants and others on September 17, 1998,
alleging violations of Sections 5(a), 5(c) and
17(a) of the Securities Act of 1933 and Sections
10(b) and 15(a) of the Securities Exchange Act
of 1934 and Rule 10b-5 thereunder.
Koontz
is the fifth defendant to be charged by the Tampa
U.S. Attorney as a result of this scheme. Fulcher
(mail fraud), DeVille (securities and wire fraud),
Stewart Koral (false statements), and Joseph Papasidero
(misprision of a felony), have all entered guilty
pleas and been sentenced in U.S. District Court
in Tampa, Florida. In addition, the District Court
in Massachusetts has entered judgments in the
Commission's action against defendants Fulcher,
Walter Lapp, Lawrence Seppanen, and Thomas Dolan,
all of whom acted at sales agents. The Commission's
action is continuing as to Koontz and other defendants.
For
further information about the Commission's emergency
action, see Lit. Rel. No. 15892.
from:
http://www.sec.gov/litigation/litreleases/lr16927.htm
UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16736 / September 28,
2000
SEC
v. Terry V. Koontz, et al., Civil Action No. 98cv11904NG
(D. Mass., Sept. 17, 1998)
The
Securities and Exchange Commission announced today
that judgments were entered in its civil enforcement
action against four salesmen who sold fictitious
prime bank instruments in a $19 million offering
fraud. Richard J. Fulcher, of Moseley, Virginia,
Thomas J. Dolan, of Northport, New York, Lawrence
E. Seppanen, of Marlton, New Jersey, and Walter
G. Lapp, of Hamilton, New Jersey, all former registered
representatives associated with World Marketing
Alliance, Inc. ("WMA"), consented to
the entry of permanent injunctions, and Fulcher
also agreed to pay disgorgement of $660,553 plus
interest and a civil penalty of $75,000. Based
on their demonstrated financial inability to pay,
the Court waived payment of disgorgement and prejudgment
interest by and did not impose a civil penalty
against to Dolan, Seppanen, and Lapp.
The
Commission's complaint in SEC v. Koontz, et
al. (D. Mass., filed Sept. 17, 1998), alleged
that Fulcher, Dolan, Seppanen, and Lapp were among
several individuals involved in a scheme in which
more than 80 individuals in 16 states were induced
to invest over $19 million in a fictitious "international
bank debenture trading" program called Private
Pool, LLC. The complaint alleged that Fulcher,
Dolan, Seppanen, and Lapp sold a total of over
$7.7 million of unregistered securities of Private
Pool to approximately 39 investors.
The
complaint further alleged that Fulcher, Dolan,
Seppanen, and Lapp made various false representations
to potential investors about Private Pool, including
representations that investors would earn a return
of 1% per week for a 40-week trading period, that
their funds would be secured by government bonds
in a two-to-one ratio, and that investors would
receive a security interest in the bonds evidenced
by a UCC-1 financing statement filed with the
State of New York. The complaint alleged that
"international bank debenture trading"
does not exist and that the invested funds were
used by the scheme's promoters to pay other investors
and sales commissions and for personal purposes,
including the purchase of homes, jewelry, and
automobiles, including Cadillacs, BMWs, and a
Mercedes Benz.
Fulcher,
Dolan, Seppanen, and Lapp consented, without admitting
or denying the allegations of the Commission's
complaint, to the entry of a final judgment permanently
enjoining them from violating Sections 5(a), 5(c)
and 17(a) of the Securities Act of 1933 and Sections
10(b) and 15(a) of the Securities Exchange Act
of 1934 and Rule 10b-5 thereunder. The Commission's
action is continuing as to the remaining defendants
and relief defendants.
from:
http://www.sec.gov/litigation/litreleases/lr16736.htm
UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16727 / September 27,
2000
SEC
v. Terry V. Koontz, et al., Civil Action No. 98cv11904NG
(D. Mass., Sept. 17, 1998)
United
States v. Terry V. Koontz, Action No. 8:00-CR-341-T-24F
(M.D.Fl., Sept. 20, 2000)
The
Securities and Exchange Commission ("Commission")
announced today that on September 20, 2000, the
U.S. Attorney's Office for the Middle District
of Florida (Tampa) filed an information against
Terry V. Koontz, charging Koontz with conspiracy,
securities fraud, and wire fraud in relation to
a scheme in which he orchestrated the sale of
$23 million of fraudulent securities, together
with Koontz's plea agreement, which waived indictment
to the charges and agreed to forfeit various assets
purchased with proceeds of the fraud.
The
charges arise out of a vast prime bank Ponzi scheme
investigated by the Commission. Koontz and others
conducted this scheme, in which they induced more
than 80 individuals in 16 states to invest over
$20 million in a fictitious "international
bank debenture trading" program called Private
Pool, LLC. On September 17, 1998, the Commission
filed an emergency action against Koontz and others
in the U.S. District Court for the District of
Massachusetts, alleging that Koontz orchestrated
this scheme and utilized various sales agents
to solicit investments from unwary investors,
promising them a return of 1% per week for a forty-week
period. Upon filing, the Court granted the Commission's
request for a temporary restraining order and
an asset freeze against Koontz and others. In
October 1998, the Court granted the Commission's
request for a preliminary injunction against Koontz
and others.
The
SEC action further alleged that Koontz falsely
represented himself to be affiliated with Barclays
Bank and that he traded "international bank
debentures." In fact, international bank
debentures do not exist, and Koontz was not affiliated
with Barclays. The complaint also alleged that
Koontz provided others with various fraudulent
documents for distribution to investors. Moreover,
the complaint alleged that Koontz used the invested
funds to pay other investors and sales commissions
and that he dissipated at least $9.9 million of
investor funds for personal purposes.
Koontz
is the fifth defendant to be charged by the Tampa
U.S. Attorney as a result of this scheme. Stewart
Koral (false statements), Joseph Papasidero (misprision
of a felony), Richard J. Fulcher (mail fraud),
and Jeffrey A. DeVille (securities and wire fraud)
have all previously entered guilty pleas in U.S.
District Court in Tampa, Florida. In addition,
the District Court in Massachusetts has entered
judgments in the Commission's action against defendants
Fulcher, Walter Lapp, Lawrence Seppanen, and Thomas
Dolan, all of whom acted at sales agents. The
Commission's action is continuing as to Koontz
and other defendants.
SEC
v. Terry V. Koontz, et al., Civil Action No. 98cv11904NG
(D. Mass.), Lit. Rel. No. 15892. Contact Person:
Linda B. Bridgman, (617) 424-5929.
from:
http://www.sec.gov/litigation/litreleases/lr16727.htm
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