SECURITIES AND EXCHANGE COMMISION
Litigation Release No. 16321 / September 30, 1999
SEC STOPS $110 MILLION ON-GOING FRAUDULENT OFFERING AND
MISAPPROPRIATION OF INVESTOR FUNDS
Securities and Exchange Commission v. Latin American Services Co.,
Ltd., Cyprus Funds, Inc., Eric V. Bartoli, Douglas R. Shisler, James
L. Binge And Peter J. Esposito, Case No. 99-2360-CIV-DAVIS (S.D. Fla.)
The Securities and Exchange Commission ("SEC") announced that on
August 27, 1999, the Honorable Edward B. Davis of the United States
District Court for the Southern District of Florida entered multiple
emergency Orders to halt an ongoing, fraudulent offering of
unregistered securities by Cyprus Funds, Inc. ("Cyprus Funds"), an
unregistered foreign mutual fund, and its investment advisor Latin
American Services Co., Ltd. (Lasco), and to halt the further
misappropriation of assets and investor funds by their principals. In
its Complaint and application to the Court for a temporary restraining
order, asset freeze and appointment of a receiver, all of which the
Court granted, the SEC alleged that Cyprus Funds and Lasco had raised
over $110 million from investors in the United States and in Latin
America through the sale of mutual fund shares and "certificates of
deposit," but that millions of investor funds and other assets had
been misappropriated by Cyprus Funds, Lasco and its principals.
Named as defendants in the SEC's Complaint in addition to Cyprus Funds
and Lasco were the following four Cyprus Funds directors
Eric V. Bartoli, who is also a registered principal and general
manager of Lasco, is 45 years old and resides in Marshallville,
Ohio and Miami, Florida.
James L. Binge, is 52 years old and resides in Massillon, Ohio.
Douglas R. Shisler, is 52 years old and resides in Doylestown,
Ohio.
Peter J. Esposito, is 45 years old and resides in Canfield, Ohio.
The SEC's complaint also names B&S Farms, Inc. and Flanders Investment
Holdings Limited, Inc. as relief defendants. The SEC alleges that the
relief defendants, which are controlled by defendants Bartoli, Binge
and Shisler, received investor funds to which investors are entitled.
The Court ordered that the relief defendants' assets be frozen pending
a hearing on the SEC's motion for preliminary injunction.
According to the SEC's complaint, since at least 1993, defendants have
sold Cyprus Funds investments to Latin American and U.S. investors.
Many of the U.S. investors are elderly Ohio residents who invested
SNIPPETS:
SECURITIES AND EXCHANGE COMMISION
SEC STOPS $110 MILLION ON-GOING FRAUDULENT OFFERING AND MISAPPROPRIATION OF INVESTOR FUNDS
The Securities and Exchange Commission announced that on August 27, 1999, the Honorable
In its Complaint and application to the Court for a temporary restraining order, asset freeze
Eric V. Bartoli, who is also a registered principal and general manager of Lasco, is 45 years
James L. Binge, is 52 years old and resides in Massillon, Ohio.
Douglas R. Shisler, is 52 years old and resides in Doylestown, Ohio.
Peter J. Esposito, is 45 years old and resides in Canfield, Ohio.
The SEC's complaint also names B&S Farms, Inc. and Flanders Investment Holdings Limited, Inc.
The SEC alleges that the relief defendants, which are controlled by defendants Bartoli, Binge
The Court ordered that the relief defendants' assets be frozen pending a hearing on the SEC's
According to the SEC's complaint, since at least 1993, defendants have sold Cyprus Funds
Many of the U.S. investors are elderly Ohio residents who invested their retirement savings
The SEC's Complaint alleges that defendants have violated Sections 5, 5and 17of the
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