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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
DISTRICT LIFE CLUB JUDGE HOGAN COURT RECEIVER INVESTORS POOL COLUMBIA PONZI SCHEME CREDITORS WASHINGTON ROBERT TAYLOR UNITED STATES DISTRICT STATES DISTRICT COURT PROFITS LIT COMMISSION ADVERTISING POOL AMOUNTS TFH MICHAEL JAMES SUMMARY JUDGMENT PAY FUNDS DISGORGE INTENT HINDER |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 15737 / May 14, 1998
SEC v. THE BETTER LIFE CLUB OF AMERICA, INC., and ROBERT N. TAYLOR,
United
States District Court for the District of Columbia, Civ. No. 95-1679
(TFH);
MICHAEL MISSAL, Receiver, v. JAMES E. WASHINGTON et al., United States
District Court for the District of Columbia, Civ. No. 97-982 (TFH).
The United States District Court for the District of Columbia has
granted
summary judgment to Michael J. Missal, the court-appointed receiver for
the
Better Life Club of America, Inc., in his lawsuit against James
Washington,
Jacob Haynes, Dreams Unlimited, and Concepts Unlimited (the Dreams
Defendants ). Judge Thomas F. Hogan ordered the Dreams Defendants to
pay
to the receiver all of the profits they made from investing in the
Better
Life Club Advertising Pool, a Ponzi scheme in which thousands of
investors lost more than $26 million. Judge Hogan found that these
defendants received at least $2.7 million. All of the moneys
recovered
will be added to the pool of funds that will be distributed to the
victims
of the Better Life Club Ponzi scheme. Not including the amounts to be
repaid by the Dreams Defendants and others who have been ordered to
disgorge investor funds, that pool currently contains approximately
$2.4
million.
In his decision, which was issued on April 17, 1998, Judge Hogan found
that
the Dreams Defendants, on behalf of themselves and their family and
friends, invested more than $5 million in the Better Life Club
Advertising
Pool from February 1994 through August 1995. Although the Better
Life
Club promised to pay the Dreams Defendants a 100 percent return in 60
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