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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMPLAINT MBM CLIENTS UNITED STATES CHARGES ACCOUNTS UNITED STATES SECURITIES EXCHANGE COMMISSION JUAN CARLOS MARTINEZ INVESTMENT UNITED STATES ATTORNEY SOUTHERN DISTRICT TEXAS CRIMINAL COMPLAINT WIRE FRAUD OFFICER CLIENT FUNDS UNAUTHORIZED TRADES SALE CONSERVATIVE INVESTMENTS PURCHASE RISKY OPTIONS BERMUDA-BASED COMPANY RETAIL CLOTHING STORES RUSSIA LOSSES ACCORDING UNAUTHORIZED ACTIVITIES FABRICATED DOCUMENTS FALSIFIED ACCOUNT STATEMENTS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15407 / July 8, 1997
UNITED STATES OF AMERICA V. JUAN CARLOS MARTINEZ, H-97-476, USDC,
SD/TX
The United States Attorney for the Southern District of Texas
announced that on May 21, 1997, Juan Carlos Martinez ("Martinez") was
charged by a criminal complaint with wire fraud (18 U.S.C. 1343).
The
complaint charges that Martinez, an officer, registered principal and
registered representative of MBM Investment Corp. ("MBM"), a broker
dealer
registered with the United States Securities and Exchange Commission,
diverted more than $130,000 in client funds from MBM accounts for his
own
benefit. The complaint further charges that Martinez made
unauthorized
trades in client accounts, including the sale of conservative
investments
and the purchase of risky options and speculative bonds issued by a
Bermuda-based company attempting to establish retail clothing stores
in
Russia. The complaint charges that these unauthorized transactions
resulted in losses of more than $10 million to MBM clients. According
to
the complaint, Martinez concealed his unauthorized activities in MBM
client
accounts by providing MBM clients with fabricated documents,
including
falsified account statements.
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