UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15789 / June 24, 1998
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 June 22, 1998, the United States District Court for the
Northern
District of Texas granted the Commission s request for an order
freezing
the assets of Lennox Investment Group, Ltd. ( Lennox ), Active
International, Inc. ( Active ), Randall W. Randall W. Law ( Law ),
James F.
Wardell ( Wardell ), Monica M. Iles ( Iles ), Frank L. Peitz ( Peitz ),
and
Daniel B. Benson ( Benson ), and relief defendants P.B.F. Capital
Corp,
Inc., Benson Financial, Inc., Robert Paladino, People s Residential
Mortgage Corp., Benny Griffis, and L. E. Consultant Company.
Additionally,
the Court ordered all defendants to account for investor monies and to
repatriate any funds not subject to the jurisdiction of the Court, and
ordered the appointment of a receiver to take control of the assets of
the
defendants for the benefit of investors.
According to the Commission s complaint, Lennox, Active, Law,
Wardell, Iles, Peitz and Benson raised 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
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
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
On June 22, 1998, the United States District Court for the Northern
Additionally, the Court ordered all defendants to account for investor monies and to
According to the Commission s complaint, Lennox, Active, Law, Wardell, Iles, Peitz and Benson
In fact, according to the complaint, the trading program did not exist and these defendants,
The complaint further requests an order permanently enjoining Lennox, Active, Law, Wardell,
The Commission s request for a preliminary injunction enjoining Lennox, Active, Law, Wardell,
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