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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
INVESTORS SECURITIES ATM EXCHANGE COMMISSION CIVIL BUSINESS VIOLATIONS ANTIFRAUD PROVISIONS REPRESENTATIONS COMPLAINT ACT ORDER ENJOINED ELLIS FUTURE VIOLATIONS FEDERAL SECURITIES LAWS COURT AMOUNT DISGORGEMENT CIVIL PENALTY COMMISSION ACCUSED ELLIS AUTOMATED TELLER MACHINE REPAY PRINCIPAL INVESTMENT PROFIT-SHARE ATM MANUFACTURING COMPANY MISLEADING COMPLAINT CHARGED ELLIS THEREUNDER LIT |
Securities and Exchange Commission
Litigation Release No. 16630 \ July 17, 2000
, Civil Action No. 3-00CV1040-P
On June 30, 2000, Judge Jorge Solis issued an Order of Permanent
Injunction against Larry W. Ellis, the former operator of a
Dallas-based business known as ATM Technology Systems. The Order
enjoined Ellis from future violations of the antifraud provisions of
the federal securities laws. The Court will determine the specific
amount of disgorgement and whether a civil penalty should be imposed
at a later date.
On May 17, 2000, the Commission accused Ellis of raising approximately
$1 million from investors with false representations about his
automated teller machine business. The complaint alleged, among other
things, that Ellis misrepresented to investors that they would receive
a secured interest in a specific ATM in return for an initial
investment of $10,000. Ellis promised to repay the investors their
principal investment with interest over a three year period, and also
promised a profit-share interest in the ATM in which they invested.
Ellis further claimed that he owned an ATM manufacturing company.
These representations were false and misleading.
The complaint charged Ellis with violations of the antifraud
provisions of Section 17(a) of the Securities Act of 1933, Section
10(b)(5) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder. (Lit. Rel. 16560, May 22, 2000.)
_________________________________________________________________
Modified 07/17/2000
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