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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES COMPLAINT EXCHANGE COMMISSION VIOLATIONS COMPLAINT ALLEGES NICHOLAS LOBUE CIVIL DISTRICT SECURITIES LAWS INVESTORS TRADING FACTS ACT SHOWING TRADING PROFITS LOSSES MISREPRESENTATIONS STATE MATERIAL FACTS PRIOR CONVICTIONS THEFT PLED GUILTY INSURANCE FRAUD EMPLOYMENT PAVILION SECURITIES ORDER PERMANENTLY ENJOINING FUTURE VIOLATIONS THEREUNDER DISGORGEMENT PREJUDGMENT CIVIL PENALTIES |
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16317 / September 30, 1999
SEC v. TODD HANSEN AND NICHOLAS LOBUE (U.S.D.C. N.D. Ill. Civil Action
No. 99 C 6386 Filed September 28, 1999)
The Securities and Exchange Commission ("Commission") announced that
on September 28, 1999, the Commission filed a Complaint in the United
States District Court for the Northern District of Illinois against
Todd Hansen ("Hansen") and Nicholas LoBue ("LoBue") alleging
violations of the antifraud provisions of the federal securities laws.
The Commission's Complaint alleges that on or about December 1996
through approximately June 1997, Hansen and LoBue raised about
$660,000 from investors and that Hansen and LoBue misappropriated
approximately $234,000 which was to be used for trading and which
instead was directed to other entities in which LoBue had ownership
interests. The Complaint also alleges that Hansen and LoBue sent
investors false account statements showing trading profits instead of
losses. Furthermore, the Complaint alleges that Hansen and LoBue made
misrepresentations and failed to state material facts about Hansen's
prior convictions for theft and state securities laws violations, the
fact that he pled guilty to insurance fraud and his actual employment
status with Pavilion Securities.
The complaint seeks, among other things, an order permanently
enjoining Hansen and LoBue from future violations of Section 17(a) of
the Securities Act of 1933, Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 thereunder as well as disgorgement,
prejudgment interest and civil penalties.
_________________________________________________________________
Modified 09/30/1999
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