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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
ALANIZ INVESTORS SECURITIES COMMISSION COMPLAINT DEFENDANTS EXCHANGE COMMISSION JUDGE D/B/A CEN-TEX ALCHEMY CEN-TEX ALCHEMY GUILD ELIZABETH ALANIZ WACO SMITH DISTRICT TEXAS RESTRAINING ORDER FRAUDULENT MONEY FOREIGN JURISDICTION GOVERNMENT ALLEGES BANKS FUNDS PROFITS ENJOINS KLION VIOLATING REQUIRING ACT |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15766 / June 3, 1998
SECURITIES AND EXCHANGE COMMISSION v. SCOTT L. KLION, individually and
d/b/a CEN-TEX ALCHEMY GUILD, and ELIZABETH ALANIZ, W98CA186, USDC,
WD/TX
(Waco Division)
The Commission announced today that Judge Walter S. Smith, United
States District Judge for the Western District of Texas, Waco
Division,
granted the Commission's request for an emergency restraining order to
halt
the fraudulent money raising efforts of Scott L. Klion, individually
and
d/b/a Cen-Tex Alchemy Guild, and Elizabeth Alaniz of Copperas Cove,
Texas.
According to the Commission's complaint, Klion and his fiancee,
Alaniz,
raised approximately $2.7 million from at least 1,400 investors in
several
states through the offer and sale of interests in a fraudulent Pure
Contract Trust investment program. Klion and Alaniz represented to
investors that their money was pooled and then used to make a variety
of
foreign or offshore investments that Klion and Alaniz claimed were not
subject to the jurisdiction of any Agent or Agency of the U. S.
Government. The complaint alleges that Klion and Alaniz told investors
that
these secret investments would generate gross returns of 400% or
more,
that virtually all of the investments were guaranteed by Top 100
banks,
and that the remainder were backed by either unidentified wealthy
individuals or the governments of foreign countries. The complaint
further
states that the trading programs do not exist and that, in fact, the
defendants used funds obtained from current investors to pay purported
profits in the form of monthly dividends to prior investors, in an
obvious
Ponzi scheme, and for their own personal expenses, including a
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