 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC LITIGATION RELEASE
|
EXTRACTED KEY WORDS
INVESTORS COMMISSION SECURITIES ALLIANCE LEASING CORPORATION PLAN UNITED STATES TRUSTEE COURT JUDGE UNITED STATES DISTRICT EXCHANGE COMMISSION LITIGATION BANKRUPTCY MONEY JONES PRINCIPALS PROVISIONS TEMPORARY RESTRAINING ORDER SALES FRAUDULENT UNREGISTERED EQUIPMENT LEASING DISTRICT JUDGE NAPOLEON PRIME ASSETS ANTIFRAUD PROVISIONS FEDERAL SECURITIES LAWS BROKER-DEALER REGISTRATION PROVISIONS MOTION SUMMARY JUDGMENT DEFENDANTS |
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16393 / December 16, 1999
In re Alliance Leasing Corporation, Case No. 98-14142-B11 (Bankr. S.D.
Cal.)
SEC v. Alliance Leasing Corporation and Prime Atlantic, Inc., Case No.
98 CV 1810J CGA (S.D. Cal.).
The Securities and Exchange Commission ("Commission") announced today
that a federal bankruptcy court approved a plan to return money to
defrauded investors in Alliance Leasing Corporation ("Alliance"). On
December 15, 1999, United States Bankruptcy Judge Peter W. Bowie
confirmed a reorganization plan proposed by David T. Cleary (the
Chapter 11 Trustee appointed over Alliance) and a creditors'
committee. Under the plan, the Trustee will distribute at least
$20 million to more than 1,600 individual investors throughout the
United States within several weeks. The plan calls for the Trustee to
make additional distributions to investors based on the Trustee's
ability to recover investor funds through continued litigation.
The money which the Trustee will distribute to investors was
originally frozen by court order on the request of the Commission as
part of its civil enforcement action in this matter. On October 7,
1998, the Commission obtained a temporary restraining order from the
United States District Court against Alliance and Prime Atlantic, Inc.
("Prime") to stop the sales of fraudulent, unregistered equipment
leasing investments to investors. In addition, United States District
Judge Napoleon A. Jones, Jr. ordered that more than $22 million in
Alliance and Prime assets be frozen. The Commission has alleged that
Alliance, Prime, and the principals of these companies violated the
securities registration and antifraud provisions of the federal
securities laws, and that Prime additionally violated the
broker-dealer registration provisions. The Commission's action against
the principals of Alliance and Prime continues. The Commission's
motion for summary judgment against these defendants is currently
scheduled for hearing before Judge Jones in January 2000.
_________________________________________________________________
Modified 12/17/1999
SNIPPETS:
|
|
|
| | | |
|
|
