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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES COMPLAINT SALES POWELSON SHORTSLEEVE INFOMERCIALS KLINE COMMISSION LIVES ALLEGES SALES MATERIALS EXCHANGE COMMISSION FLORIDA VIOLATING REAL ESTATE MONEY RICHARD CARLOS POWELSON ROGER FREDERICK KLINE BRYAN PAUL SHORTSLEEVE CIVIL FRAUD SCHEME DISTRICT PETERSBURG FEDERAL SECURITIES LAWS REAL ESTATE TRAINING ESTATE TRAINING PROGRAM DISCLOSE ACT |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
RELEASE NO. 15749 / May 19, 1998
Securities and Exchange Commission v. Richard Carlos Powelson,
individually
and dba PBS Trust, Roger Frederick Kline, and Bryan Paul Shortsleeve,
(M.D.
Fla., Civil No. 98-949-CIV-T-23F)
The Commission today announced the filing of a Complaint charging
three individuals with securities fraud in the sales of a get rich
quick
infomercial scheme. The Complaint filed on May 5, 1998 in the United
States District Court for the Middle District of Florida names the
infomercial creator, Richard Carlos Powelson, who lives in Kansas
City,
Missouri, and two salesmen, Roger Frederick Kline, and Bryan Paul
Shortsleeve, who live in St. Petersburg, Florida with violating the
federal
securities laws by making false statements while selling to elderly
clients
investments in an infomercial created by Powelson to sell his real
estate
training program that is titled "How to Build a Fortune." The scheme
raised $1,096,000 from fifteen investors, the majority of whom live in
the
St. Petersburg, Florida area and the remainder live in Potage and
Walled
Lake, Michigan and Winona, Minnesota.
The Complaint alleges that Powelson, Kline and Shortsleeve gave
investors sales materials that falsely represented investors would
receive
150 percent return on their investment within six to nine months based
on
sales of 300,000 of Powelson's real estate training programs; however,
Powelson had no reasonable basis for these projected sales and
earnings,
because he had never previously produced an infomercial. He had only
appeared as a speaker in earlier infomercials.
The Complaint also alleges that the sales materials failed to
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