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SEC v LENNOX INVESTMENT GROUP, LTD., ACTIVE INTERNATIONAL, et al Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16054, Defendant: Lennox Investment Group, Ltd., Active International, Inc., Randall W. Law, James F. Wardell, Monica M. Iles, Frank L. Peitz, and Daniel B. Benson, Plaintiff: SEC, State: WA Washington, UniqueCaseRef: SEC>LR-16054, CourtName: I IBI THE COURT ORDERED BENSON AND ACTIVE, AND RELIEF, Investors, Securities, Funds, Kosova, Forex, Commission, Complaint, Benson, Account, Exchange Commission, Asset, Fraud, Internet, Arizona, Plus Prejudgment, Relief Defendants, Exchange, Act, Report, Enforcement Complaint, Charges, Foreign Currency, Trading, Restraining Order, Acc, Trading Program, Ibi, Pbf, Relief Defendants Bfi, Federal Securities Laws, United States, Injunction, Freeze, Lost, Secure, Withdraw, Risk, Reality, Arizona Corporation, Violations, Amounts, Disgorgement, District , ContentID: 120242058

Case Documents
1 1999-02-04 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 131668
2 pages
TXT
2 1999-02-04 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 105151
3 pages
TXT
Total Documents: 2 documents , 5 pages
Price: $ 24.95


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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
INVESTORS
DEFENDANTS
SECURITIES
FUNDS
PLUS PREJUDGMENT
RELIEF DEFENDANTS
EXCHANGE
TRADING PROGRAM
IBI
PBF
RELIEF DEFENDANTS BFI
COURT
FEDERAL SECURITIES LAWS
EXCHANGE COMMISSION
UNITED STATES
COMPLAINT
VIOLATIONS
AMOUNTS
DISGORGEMENT
DISTRICT
JUDGE
DANIEL
ANTIFRAUD PROVISIONS
ENJOINING
ENTERED PERMANENT INJUNCTIONS
COURT ENTERED PERMANENT
DESIGNEES
STOLE
ACCORDING
                      UNITED STATES SECURITIES AND EXCHANGE COMMISSION

           LITIGATION RELEASE NO. 16054 /  February 4, 1999

           SECURITIES AND EXCHANGE COMMISSION v. LENNOX INVESTMENT GROUP, LTD.,
           ACTIVE INTERNATIONAL, INC., RANDALL W. LAW, JAMES F. WARDELL, MONICA M.
           ILES, FRANK L. PEITZ, AND DANIEL B. BENSON, 4:98CV536-Y, USDC, ND/TX
           (Fort Worth Division)

                On January 29, 1999, Judge Terry R. Means, United States District
           Judge for the Northern District of  Texas, entered an order granting
           the Securities and Exchange Commission’s ("Commission") motion for
           default judgment against defendants Daniel B. Benson ("Benson") and
           Active International, Inc. ("Active"), and relief defendants Benson
           Financial, Inc. ("BFI"), P.B.F. Capital Group, Inc. ("PBF"), and
           I.B.I., Inc. ("IBI").  The Court ordered Benson and Active, and relief
           defendants BFI, PBF and IBI,  to pay disgorgement in amounts
           representing money or the value of property received from funds
           collected from investors as a result of the defendants’ violations of
           the federal securities laws.  Specifically, Benson, Active, and relief
           defendants BFI, PBF and IBI, were ordered to disgorge the following
           amounts: (1) Benson and Active,  jointly and severally  - $11,109,000,
           plus prejudgment interest of $2,500,000; (2)  BFI - $2,053,586, plus
           prejudgment interest of $445,099; (3) PBF - $3,949,273, plus
           prejudgment interest of $839,519; and (4) IBI - $335,000, plus
           prejudgment interest of $18,196.  The Commission has submitted an
           application to the Court proposing civil penalties of $100,000 against
           Benson and $500,000 against Active.

                The Commission’s complaint charged Benson and Active, and other
           defendants, with raising approximately $11.1 million from more than 50
           investors in at least 10 states through the fraudulent offer and sale
           of unregistered "prime bank" securities. Investors were told that their
           funds would be placed in an escrow account, with the investment
           principal guaranteed, and that their funds would be invested in a
           trading program where investors could expect a yield of 122.5% per week
           for 40 weeks during the 54 week term of the program. In fact, according
           to the complaint,  the trading program did not exist and the
           defendants, instead of investing the funds, stole the entire $11.1
           million of investors’ funds which were disbursed for the benefit of
           themselves and their designees, including the relief defendants.

                The Court’s latest order followed a November 24, 1998 order in
           which the Court entered permanent injunctions by default against Benson
           and Active, enjoining them from further violations of the antifraud
           provisions of the federal securities laws found in Section 17(a) of the
           Securities Act of 1933, and Section 10(b) of the Securities Exchange
           Act of 1934 and Rule 10b-5 thereunder.

SNIPPETS:
  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  • On January 29, 1999, Judge Terry R. Means, United States District Judge for the Northern
  • The Court ordered Benson and Active, and relief defendants BFI, PBF and IBI, to pay
  • Specifically, Benson, Active, and relief defendants BFI, PBF and IBI, were ordered to
  • The Commission’s complaint charged Benson and Active, and other defendants, with raising
  • Investors were told that their funds would be placed in an escrow account, with the
  • In fact, according to the complaint, the trading program did not exist and the defendants,
  • The Court’s latest order followed a November 24, 1998 order in which the Court entered

  • 2 . SEC LITIGATION RELEASE

    EXTRACTED KEY WORDS
    KOSOVA
    SECURITIES
    FOREX
    COMMISSION
    FUNDS
    COMPLAINT
    ACCOUNT
    ASSET
    FRAUD
    INTERNET
    ARIZONA
    ACT
    REPORT
    ENFORCEMENT COMPLAINT
    EXCHANGE COMMISSION
    CHARGES
    FOREIGN CURRENCY
    TRADING
    RESTRAINING ORDER
    ACC
    INJUNCTION
    FREEZE
    LOST
    SECURE
    DEFENDANTS
    WITHDRAW
    RISK
    REALITY
    ARIZONA CORPORATION
    
                                 SECURITIES AND EXCHANGE COMMISSION
                                          Washington, D.C.
    
                 LITIGATION RELEASE NO.  16055 / February 8, 1999
    
                 SECURITIES AND EXCHANGE COMMISSION v. FOREX ASSET
                 MANAGEMENT, L.L.C., ET AL.  Civil Action No.  3:99-CV-0256-P
    
                 SEC CHARGES SECURITIES FRAUD IN INTERNET FOREIGN CURRENCY
                 TRADING SCHEME
    
                 On February 5, 1999, the Commission charged a Dallas company
                 and  its  president  with  fraud,  and  sought  a  temporary
                 restraining  order,  preliminary  injunction,  asset freeze,
                 accounting and expedited discovery.  Investors may have lost
                 as  much  as $2 million in the fraudulent foreign  currency-
                 trading  scheme.    The   Commission   secured  a  temporary
                 restraining order against the defendants  to  prohibit their
                 attempted  withdrawal of $750,000 of investor funds  from  a
                 brokerage account of a registered securities and commodities
                 firm.
    
                 The Commission’s  complaint  names  Forex  Asset Management,
                 L.L.C.   ("Forex")  and  its  president,  Jason  N.   Kosova
                 ("Kosova")  as  defendants.    Judge  Fitzwater  signed  the
                 temporary  restraining  order  granting the relief sought by
                 the  Commission  and also appointed  a  receiver  to  assume
                 responsibility for  the  company  and  secure assets for the
                 benefit of investors.  Specifically, the  complaint  alleges
                 that:
    
                 *  Since October 1997, Forex and Kosova raised at least $3.7
                    million  from  at  least  40  investors  in  three states
                    utilizing radio infomercials, the internet, "cold calls,"
                    and seminars.
    
                 *  Forex  and  Kosova  promised to invest investor funds  in
                    foreign currency transactions,  and to engage in "trading
                    techniques  and risk control strategy"  to  achieve  very
                    high rates of return with limited risk.  Forex and Kosova
                    also  sent  clients  monthly  account  statements,  which
                    falsely reflected profits earned in their accounts.
    
                 *  In reality, only  about $600,000 of investor money was so
                    invested.  Instead,  Forex  and  Kosova  pooled  investor
                    monies and used these funds for other purposes.  At least
                    $2  million  of  investor funds are presently unaccounted
                    for.
    
    
    SNIPPETS:
  • SECURITIES AND EXCHANGE COMMISSION v. FOREX ASSET
  • SEC CHARGES SECURITIES FRAUD IN INTERNET FOREIGN CURRENCY
  • TRADING SCHEME
  • restraining order, preliminary injunction, asset freeze,
  • Investors may have lost
  • restraining order against the defendants to prohibit their
  • attempted withdrawal of $750,000 of investor funds from a
  • brokerage account of a registered securities and commodities
  • The Commission’s complaint names Forex Asset Management,
  • Jason N. Kosova
  • responsibility for the company and secure assets for the
  • high rates of return with limited risk.
  • * In reality, only about $600,000 of investor money was so
  • investors that most of their funds had been lost.
  • withdraw $750,000 of investor funds remaining in a Forex
  • after assuring the Arizona Corporation Commission
  • ACC that he had disclosed the complete list of investors
  • Act of 1933 and Section 10of the
  • the Securities Division of the Arizona Corporation
  • A user friendly form to assist you in making a report is
  • can also mail a report to the SEC Enforcement Complaint
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