SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16638 / July 31, 2000
SEC SUES TALLAHASSEE BROKER-DEALER AND ITS PRESIDENT, ALLEGING THEFT
OF CUSTOMER FUNDS
Securities and Exhange Commission v. Meridian Asset Management, Inc.,
et al, Civil Action No. 4 00CV278RH (N.D. Florida, Tallahassee
Division)(complaint filed July 26, 2000)
On July 26, 2000, the Securities and Exchange Commission (SEC) filed a
complaint and consent to permanent injunction in an action against a
Tallahassee, Florida broker-dealer, Meridian Asset Management, Inc.
(Meridian), and its president, Robin McEachin. According to the SEC's
complaint, Meridian is a broker-dealer registered with the SEC, and an
investment adviser registered with the State of Florida. Without
admitting or denying the SEC's allegations, Meridian and McEachin
consented to the entry of a permanent injunction against future
violations of the antifraud provisions of the federal securities laws,
an asset freeze, disgorgement of ill-gotten gains, a civil money
penalty and other relief. Meridian also consented to the intervention
in the case of the Securities Investor Protection Corporation (SIPC)
and to the appointment of a SIPC trustee to liquidate Meridian for the
benefit of its customers.
The SEC alleges in its complaint that from at least 1998 through the
present, McEachin misappropriated at least $1 million, in large part
pension funds, which his customers entrusted to him for investment on
their behalf. To conceal his theft, McEachin created fictitious
Meridian account statements reflecting the purported contents and
market value of his customers' portfolios. The account statements
falsely showed purchases of securities in the customers' accounts. In
fact, McEachin had either purchased no securities, or had purchased
significantly less than reflected in the account statements. The SEC
also alleges in its complaint that Meridian failed to maintain the
minimum net capital required by law, and that it failed, or is in
danger of failing, to meet its obligations to its customers.
The SEC also named in its complaint as relief defendants two companies
under McEachin's control, Benefit Plans Consultants, Inc. (BP
Consultants) and Consolidated Capital Resources, Inc. (CC Resources),
alleging that the companies received at least $120,000 of stolen
customer funds. Both companies consented to an asset freeze and to the
entry of an order requiring them to disgorge the customer funds which
the SEC alleges they unjustly received.
The SEC alleges in its complaint that Meridian violated Sections
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SEC SUES TALLAHASSEE BROKER-DEALER AND ITS PRESIDENT, ALLEGING THEFT OF CUSTOMER FUNDS
Florida, Tallahassee Division)
On July 26, 2000, the Securities and Exchange Commission filed a complaint and consent to
According to the SEC's complaint, Meridian is a broker-dealer registered with the SEC, and an
Without admitting or denying the SEC's allegations, Meridian and McEachin consented to the
Meridian also consented to the intervention in the case of the Securities Investor Protection
The SEC alleges in its complaint that from at least 1998 through the present, McEachin
McEachin created fictitious Meridian account statements reflecting the purported contents and
The account statements falsely showed purchases of securities in the customers' accounts.
The SEC also named in its complaint as relief defendants two companies under McEachin's
Both companies consented to an asset freeze and to the entry of an order requiring them to
The SEC alleges in its complaint that Meridian violated Sections 17, 17, and 17of the
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