SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15469 / September 3, 1997
SECURITIES AND EXCHANGE COMMISSION v. ELLIS L. DEYON, BRADLEY T.
GULLETT
(INDIVIDUALLY, AND D.B.A. "GULLETT & ASSOCIATES"), WILLIAM HANKE,
DOVE
INVESTMENT GROUP, INC., AND SHERWOOD H. CRAIG (United States District
Court
for the District of Maine, Civ. Action No. 95-0164-B).
The Securities and Exchange Commission announced that on August
27,
1997, the Honorable Morton A. Brody, U.S. District Judge for the
District
of Maine, entered Judgment following a five-day trial against BRADLEY
T.
GULLETT of Maitland, Florida and SHERWOOD H. CRAIG of Orono, Maine.
The
Court found Gullett and Craig liable for securities fraud and acting
as
unlicensed brokers in an investment scheme involving deposits into a
Mexican bank. The Court permanently enjoined Gullett and Craig from
violating the antifraud and broker-dealer registration provisions of
the
federal securities laws and ordered Gullett to disgorge $41,646 of ill
gotten gains. The court also imposed a civil penalty of $75,000
against
Gullett and $25,000 against Craig. The Court ordered a third
defendant,
WILLIAM W. HANKE of Orlando, Florida, to pay a civil penalty of
$75,000.
The Court imposed a separate $75,000 penalty against Hanke's Florida
corporation, Dove Investment Group, Inc. A final judgment granting a
permanent injunction had entered previously against Hanke and Dove.
A
final judgment granting a permanent injunction and disgorgement of
over
$407,000 was entered by consent against the remaining defendant, Ellis
L.
Deyon, on January 14, 1997.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. ELLIS L. DEYON, BRADLEY T. GULLETT, WILLIAM HANKE, DOVE
INVESTMENT GROUP, INC., AND SHERWOOD H. CRAIG (United States District Court for the District
T. GULLETT of Maitland, Florida and SHERWOOD H. CRAIG of Orono, Maine.
Court found Gullett and Craig liable for securities fraud and acting as unlicensed brokers in
The Court permanently enjoined Gullett and Craig from violating the antifraud and
The court also imposed a civil penalty of $75,000 against Gullett and $25,000 against Craig.
The Court imposed a separate $75,000 penalty against Hanke's Florida corporation, Dove
A final judgment granting a permanent injunction had entered previously against Hanke and
L. Deyon, on January 14, 1997.
The Court issued detailed findings in support of the Judgment.
According to the Findings, in May and June, 1995, the defendants obtained money from
Defendants misrepresented to investors that these extraordinary rates of return would come
To explain how the bank could generate such a return, the defendants misrepresented that it
The bank account in which their funds were placed was controlled by defendant Deyon, who used
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