SEC v FIRST CALIFORNIA CAPITAL MARKETS GROUP, INC., et al


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Keywords & Phrases

CaseNo: LR-15423, CourtCode: DIS, CourtName: DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA, CIVIL ACTION, Defendant: First California Capital Markets Group, Inc., H. Michael Richardson and Derrick Dumont, Plaintiff: SEC, State: CA California, UniqueCaseRef: SEC>LR-15423, Bonds, California, Securities, Investors, Offerings, Complaint Alleges, First California, Nevada, Wasco, Exchange, Municipal Bonds, Nevada County, Financing, Ione, Violating, Exchange Act, Richardson, District, Securities Brokerage, Misrepresentations, Proceeds, Exchange Commission, Underwriting, District Court, Connection, Lives, Authority, Sale, Disclose , ContentID: 120242637

Case Documents

1997-07-28

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 105731

5 pages
TXT

Total Documents: 1 document , 5 pages

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

CALIFORNIA
SECURITIES
INVESTORS
OFFERINGS
COMPLAINT ALLEGES
FIRST CALIFORNIA
NEVADA
WASCO
EXCHANGE
MUNICIPAL BONDS
NEVADA COUNTY
DEFENDANTS
FINANCING
IONE
VIOLATING
EXCHANGE ACT
RICHARDSON
DISTRICT
SECURITIES BROKERAGE
MISREPRESENTATIONS
PROCEEDS
EXCHANGE COMMISSION
UNDERWRITING
DISTRICT COURT
CONNECTION
LIVES
AUTHORITY
SALE
DISCLOSE






                          SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No. 15423 / July 28, 1997

     SECURITIES AND EXCHANGE COMMISSION v. FIRST CALIFORNIA CAPITAL
MARKETS
     GROUP, INC., H. MICHAEL RICHARDSON and DERRICK DUMONT, United States
     District Court for the Northern District of California, Civil Action
No.
     97-2761-SI (N.D. Cal. 1997).


          The Securities and Exchange Commission ("Commission") today sued
a
     securities brokerage and two of its executives for defrauding investors
who
     bought $69 million worth of municipal bonds in five municipal bond
     offerings in California.  The Commission's Complaint alleges that
     Defendants lied to investors and omitted to tell them important
information
     in the offering materials for each bond offering about the risks
connected
     with the bonds.

          The Commission filed its lawsuit against First California
Capital
     Markets Group, Inc. ("First California"), a broker-dealer formerly
     headquartered in San Francisco (now located in San Diego), H. Michael
     Richardson, a principal of the firm who lives in the Bay Area, and
Derrick
     Dumont, the former manager of the firm's land-based financing
department
     who now lives in Calistoga.  The Complaint was filed in the United
States
     District Court for the Northern District of California.

          The Complaint alleges that the fraud was committed in connection
with
     the Defendants' underwriting of municipal bonds issued by the County
of
     Nevada ("Nevada County"), the City of Ione ("Ione"), the Avenal
Public

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION v.

FIRST CALIFORNIA CAPITAL

GROUP, INC., H. MICHAEL RICHARDSON and DERRICK DUMONT, United States District Court for the

securities brokerage and two of its executives for defrauding investors who bought $69

The Commission's Complaint alleges that Defendants lied to investors and omitted to tell them

The Commission filed its lawsuit against First California Capital

the former manager of the firm's land-based financing department who now lives in Calistoga.

The Complaint alleges that the fraud was committed in connection with the Defendants'

Financing Authority, and the Wasco Public Financing Authority

The six-count Complaint asks the court to enjoin permanently the Defendants from violating

The Complaint alleges that in the Official Statement for the Nevada County offering, the

The Complaint alleges that in the Official Statement for the Ione offerings, the Defendants

These misrepresentations and omissions were important to investors because they made the

The Avenal and Wasco offerings, which raised $11 million and $35 million respectively,

Section 10of the Securities Exchange Act of 1934 and Rule 10b-5 issued thereunder.


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