U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16101 / March 31, 1999
SECURITIES AND EXCHANGE COMMISSION v. PATRICK L. ANTRIM, DAVID
HUDSON III, LORETTA ANTRIM and MICHAEL S. WHITNEY, Civil Action
No. 98-535 GLT (EEx) (C.D. Cal.)
The Securities and Exchange Commission announced that on
March 23, 1999, the Honorable Gary L. Taylor of the United States
District Court for the Central District of California entered a
Final Judgment against defendant David Hudson III ("Hudson").
Hudson, a resident of Garden Grove, California, was an officer,
director, co-founder and 50% shareholder of The Ostrich Group,
Inc. ("Ostrich Group"), a now defunct entity, which was located
in Irvine, California. The Final Judgment permanently enjoins
Hudson from future violations of the antifraud and broker-dealer
registration provisions of the federal securities laws and orders
Hudson to pay disgorgement in the amount of $819,108.61, plus
prejudgment interest.
In its Complaint, the Commission alleged that from late 1995
until June 1997 Hudson fraudulently raised $819,108.61 from
approximately 83 investors throughout several states through the
offer and sale of investment contracts for the sale and boarding
of ostrich breeder birds. The money raised from investors was
supposed to be used to purchase, board and breed ostriches, and
Hudson promised extravagant returns from the sale of ostrich
offspring to meat processing plants. In fact, however, Hudson
and his previously enjoined co-defendants, Patrick L. Antrim and
Loretta Antrim, misused investors' funds by spending most of the
money on themselves and their family members instead of
purchasing and boarding ostriches. The Final Judgment enjoins
Hudson from future violations of Section 17(a) of the Securities
Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange
Act of 1934, and Rule 10b-5 thereunder.
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. PATRICK L. ANTRIM, DAVID HUDSON III, LORETTA ANTRIM and
The Securities and Exchange Commission announced that on March 23, 1999, the Honorable Gary
Hudson, a resident of Garden Grove, California, was an officer, director, co-founder and 50%
The Final Judgment permanently enjoins Hudson from future violations of the antifraud and
In its Complaint, the Commission alleged that from late 1995 until June 1997 Hudson
The money raised from investors was supposed to be used to purchase, board and breed
In fact, however, Hudson and his previously enjoined co-defendants, Patrick L. Antrim and
The Final Judgment enjoins Hudson from future violations of Section 17of the Securities Act
Act of 1934, and Rule 10b-5 thereunder.
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