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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
DEFENDANTS PAY EXCHANGE COMMISSION JUDGMENTS TSUTSUI UNITED STATES DISTRICT COURT TEXAS PERMANENT TSUTUSI ACT DISGORGEMENT COMPLAINT ALLEGES SAND INVESTOR ENTRY ABSOLUTE RESOURCES CORPORATION DALLAS PROCEEDS CONNECTION SALE MATERIAL MISREPRESENTATIONS OMISSIONS MATERIAL FACT OWNERSHIP INVESTOR FUNDS SAFETY |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16375 / November 30, 1999
USDC/NDTX/DALLAS 3-99CIV2222-D
The Securities and Exchange Commission announced that on October 26,
1999, the Honorable Sam A. Lindsay, United States District Court for
the Northern District of Texas entered final judgments of permanent
injunction against defendants Lawrence Arthur Petersen and Jamie T.
Tsutusi. The judgments permanently enjoined both defendants from
violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933,
and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934.
Petersen and Tsutsui were ordered to pay disgorgement in the amounts
of $115,326 and $18,741, respectively. Payment of disgorgement,
however, was waived based upon Petersen's and Tsutsui's sworn showings
of inability to pay. Moreover, the Court did not order either
defendant to pay a civil penalty because of his demonstrated inability
to pay. Petersen and Tsutusi consented to the entry of the judgment.
The Complaint, which was filed by the Commission on August 11, 1998,
alleged that between April 1993 and December 1994, Tsutsui, Petersen
and another defendant collectively raised approximately $800,000 in
promissory notes issued by Absolute Resources Corporation, a Dallas,
Texas privately held company. The proceeds of the notes were
purportedly used to develop a sand mine. The Complaint further alleges
that in connection with the offer and sale of the notes, Petersen and
Tsutsui made material misrepresentations and omissions of material
fact concerning, among other things, the ownership of the sand mine,
the use of investor funds, and the safety of the investment.
_________________________________________________________________
Modified 12/06/1999
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