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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
DEFENDANTS SECURITIES COMMISSION STOCK ITC CHEKIN COMPLAINT LEMON DISTRICT EXCHANGE COMMISSION VIOLATIONS PROCEEDS DAVID COURT COMPLAINT ALLEGES INVESTORS PUBLIC OFFERING ACT RELIEF DEFENDANTS SOUTHERN FLORIDA CIVIL ACTION FRAUDULENT SELLING ANTIFRAUD PROVISIONS MISREPRESENTING BUSINESSES FINANCE FEDERAL SECURITIES LAWS SALES |
SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15742 / May 15, 1998
SECURITIES AND EXCHANGE COMMISSION V. PHEBE W. ERDMAN, HANS L. ERDMAN
AND
DAVID M. LEMON (Defendants) and REBECCA W. ERDMAN AND LESLIE CHEKIN
(Relief
Defendants) (United States District Court for the District of Southern
Florida, Civil Action No. 98-6500-Civ-Moore).
The Securities and Exchange Commission ( Commission ) announced today
that
it filed a civil action in the United States District Court for the
District of Southern Florida against Phebe W. Erdman ( P. Erdman ) of
Greensboro, North Carolina, Hans L. Erdman ( H. Erdman ) of Blaine,
Minnesota, and David M. Lemon ( Lemon ) of Marietta, Georgia as
defendants,
and Rebecca W. Erdman ( R. Erdman ) of Greensboro, North Carolina and
Leslie Chekin ( Chekin ) of Springfield, Virginia, as relief
defendants,
for their participation in a fraudulent, unregistered offering of
securities. The Commission s Complaint alleges that P. Erdman, H.
Erdman,
R. Erdman, and Chekin received $240,000 by selling approximately
370,000
shares of stock in a worthless shell company, International Trade &
Commerce Corp. ( ITC ) to 40 investors, many of whom were residents of
Southern Florida. Defendants P. Erdman, H. Erdman and Lemon solicited
investors by misrepresenting that ITC would acquire other businesses,
realize substantial revenues and finance acquisitions through a public
offering of stock. The Complaint alleges that P. Erdman and H. Erdman
violated the registration provisions of the federal securities laws,
and P.
Erdman, H. Erdman and Lemon violated the antifraud provisions. The
Complaint also alleges that relief defendants R. Erdman and Chekin
were
unjustly enriched by the proceeds of fraudulent, unregistered sales of
ITC
stock and therefore should be required to return such proceeds to
investors.
The Complaint alleges that since approximately 1988, ITC was controlled
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