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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES JUDGMENTS EXCHANGE COMMISSION DEFENDANTS MICROWEST INDUSTRIES MICROWEST INCOME MICROWEST INCOME FUND PERKINS ACT CIC RADIOLOGY SUCCESSOR THOMAS CIVIL COURT PERMANENT INJUNCTION DISGORGEMENT DISTRICT COMPLAINT ENJOIN VIOLATIONS THEREUNDER JUDGMENTS ORDER PLUS PREJUDGMENT CIVIL MONEY PENALTY ENTITY DEFENDANTS MICROSYSTEMS PENDING |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16086 \ March 12, 1999
SECURITIES AND EXCHANGE COMMISSION v. MICROWEST INDUSTRIES,
INC. , MICROWEST INCOME FUND, THOMAS J. PERKINS, ET AL.,
Civil Action No. 97-9150 (CAS)(CTx)
The Securities and Exchange Commission announced that
on March 4, 1999, the Court entered judgments of permanent
injunction and ordered the payment of substantial
disgorgement against perpetrators of a Ponzi scheme. Judge
Christina A. Snyder of the United States District Court for
the Central District of California issued Final Judgments of
Permanent Injunction against Defendants MicroWest
Industries, Inc., and CIC Radiology, Inc. as its successor
in interest, MicroWest Income Fund and Thomas J. Perkins.
The Complaint filed by the Commission alleged that the
defendants made false claims regarding the companies
alleged ability to assemble and repair computers and an
alleged unique teleradiology process. The defendants
raised over $4.2 million from 191 investors nationwide.
The Final Judgments enjoin MicroWest Industries, CIC
Radiology as its successor in interest, and MicroWest Income
Fund from violations of Sections 5(a), 5(c) and 17(a) of the
Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder. The Final
Judgment as to Perkins enjoins him from violations of
Sections 5(a) and 5(c) of the Securities Act and Section
15(a)(1) of the Exchange Act. In addition the Final
Judgments order: (1) MicroWest Industries and CIC Radiology
as its successor in interest and MicroWest Income Fund to
disgorge $2,800,000, plus prejudgment interest of
$222,125.03, and (2) Perkins to pay a $5,500 civil money
penalty.
The Complaint, which was filed on September 17, 1997,
named thirteen individuals and entity Defendants. A
Judgment of Default was previously entered against MicroWest
Microsystems, Inc. The case remains pending against the
other defendants.
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