SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16960 / April 12, 2001
SECURITIES AND EXCHANGE COMMISSION V. FIRST AMERICAP CORPORATION,
CAPITAL RELATIONS GROUP, LLC, STEPHEN HARRISON THOMAS, ROBERT DOUGLAS
WILLIAMS, TIJI THOMAS, CYRUS INDUSTRIES, INC., f/k/a ICON TRADING,
INC., RAECE B. RICHARDSON and BYTEAUDIO.COM, INC., Defendants. Civil
Action No. H 01-1153 (USDC/S.D. Tex.)
On April 6, 2001, Judge Vanessa D. Gilmore, U.S. District Court for
the Southern District of Texas, Houston Division, granted the
Commission's request for a temporary restraining order against Capital
Relations Group, L.L.C. ("Capital Relations"), Stephen Harrison
Thomas, Robert Douglas Williams, Tiji Thomas and ByteAudio.com, Inc.
("Byte"). Judge Gilmore also entered an order freezing the assets of
First Americap Corporation ("First Americap"), Capital Relations,
Stephen Thomas, Robert Williams, Tiji Thomas, Cyrus Industries, Inc.
("Cyrus"), and Raece Richardson. The Commission's complaint alleges
that the defendants fraudulently sold more than $8 million of stock in
two companies to 1400 investors nationwide using high-pressure,
boiler-room sales tactics.
The defendants named in the Commission's Complaint are
First Americap, Corp. is a Houston-based, Texas corporation that was
formed in July 1999. Its officers, directors and owners are Stephen
Thomas and Robert Williams. Though not registered with the Commission
as a broker-dealer, First Americap raised funds for Cyrus and Byte.
The company, as well as other defendants, has been the subject of
multiple state enforcement actions for its money-raising activities.
Capital Relations Group, L.L.C. is a Houston-based, Texas limited
liability company that was formed by Stephen Thomas and Robert
Williams in July 2000, immediately after the Texas State Securities
Board and the Harris County District Attorney executed a search
warrant on First Americap's offices. Though not registered with the
Commission as a broker-dealer, Capital Relations raised funds for
Byte.
Stephen Harrison Thomas, age 51, of Houston, is an officer, director
and owner of First Americap and a managing member of Capital
Relations. He is not licensed to sell securities and has been the
subject of a Washington state cease-and-desist order for his
involvement in these money-raising activities.
Robert Douglas Williams, age 33, of Houston, is an officer, director
and owner of First Americap and a managing member of Capital
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION V.
FIRST AMERICAP CORPORATION, CAPITAL RELATIONS GROUP, LLC, STEPHEN HARRISON THOMAS, ROBERT
On April 6, 2001, Judge Vanessa D. Gilmore, U.S. District Court for the Southern District of
Judge Gilmore also entered an order freezing the assets of First Americap Corporation,
The Commission's complaint alleges that the defendants fraudulently sold more than $8 million
First Americap, Corp. is a Houston-based, Texas corporation that was formed in July 1999.
directors and owners are Stephen Thomas and Robert Williams.
Though not registered with the Commission as a broker-dealer, First Americap raised funds for
Stephen Harrison Thomas, age 51, of Houston, is an officer, director and owner of First
He is not licensed to sell securities and has been the subject of a Washington state
Tiji Thomas, age 33, of Houston, is the vice president of sales for First Americap and
Raece Richardson, age 37, is an Australian citizen living in Huntington Beach, California.
Many of the thousands of investors pitched by First Americap and Capital Relations were led
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