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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES EXCHANGE COMMISSION GEORGIA UNITED STATES LITIGATION ROBERT DISTRICT ACT COMPLAINT FUNDS AUTHORIZATION MONEY FALSIFYING OFFICER COMPLAINT SETS SCHEME DEFRAUD COMPLAINT ALLEGES CONTRAVENTION INVESTMENT POLICIES STRAUSS RECEIVED KICKBACKS STOCK UNAUTHORIZED SECURITIES TRANSACTIONS FALSIFYING ENTRIES BOOKS FALSIFYING REPORTS GEORGIA REGULATORY AUTHORITIES MAKING FALSE REPRESENTATIONS INDEPENDENT AUDITORS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16378 / December 2, 1999
SECURITIES AND EXCHANGE COMMISSION v. ROBERT J. STRAUSS, United States
District Court for the Northern District of Georgia, Civil Action No.
1 99-CV-2965 (N.D. Ga)
The Commission announced that on November 24, 1999, the Honorable
Richard W. Story entered a final judgment of permanent injunction by
consent enjoining Robert J. Strauss (Strauss), a former vice president
and portfolio manager of State Mutual Insurance Company (State
Mutual), of Rome, Georgia from future violations of Section 17(a) of
the Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934, and Rule 10b-5 thereunder. In addition, Strauss
was barred from serving as an officer or director of any publicly held
company.
The Commission's complaint sets forth Strauss's scheme to defraud and
efforts taken to conceal his activities from State Mutual. For
example, from April 1995 through August 1997, the complaint alleges
that Strauss fraudulently transferred over $16 million in funds and
securities from State Mutual, of which Strauss misappropriated
approximately $5.8 million. Strauss fraudulently transferred the funds
and securities without State Mutual's authorization and in
contravention of its investment policies. In addition, Strauss
received kickbacks of approximately $3.2 million in money and/or stock
for the unauthorized securities transactions and unauthorized
transfers of money. Strauss concealed his conduct by, among other
things, falsifying entries on State Mutual's books and records,
falsifying reports to State of Georgia regulatory authorities, and by
making false representations to State Mutual's internal and
independent auditors. See Litigation Release No. 16360.
_________________________________________________________________
Modified 12/06/1999
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