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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
NU-LIFE ARTHUR UNITED STATES EXCHANGE COMMISSION GEORGIA COMPLAINT GENE ARTHUR CIVIL DISTRICT RELIEF ACT COURT ACCOUNTINGS DEFENDANTS INVESTORS DENYING ALLEGATIONS SET SELLING SECURITIES INVESTMENT CONTRACTS STOCK OPTIONS DEFENDANTS SOLD NU-LIFE SOLD NU-LIFE MEMBERSHIPS PRICES RANGING MISREPRESENTING FAILING DISCLOSE MATERIAL FACTS CONNECTION SALE LITIGATION |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release 15379 / May 30, 1997
SEC v. Nu-Life International of Georgia, Inc. and Gene Arthur
(Civil Action No. 1:96-CV-2534-ODE, N.D. Ga.)
The Securities and Exchange Commission announced today that on May
21,
1997, the Honorable Orinda D. Evans, United States District Judge for
the
Northern District of Georgia, entered separate orders of permanent
injunction and other relief against Nu-Life International of Georgia,
Inc.
("Nu-Life") and Gene Arthur ("Arthur"), enjoining them from violating
Section 17(a) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Arthur
was
ordered to pay civil penalties in the amount of $20,000 within 30 days
of
the date of the Order. The Court further ordered Nu-Life and Arthur
to
prepare sworn accountings of all monies received from the scheme and of
the
disposition and use of said funds. The accountings are to be submitted
to
the Court within 30 days of the date of the Court's order.
Nu-Life and Arthur consented to the relief without admitting or
denying the allegations set forth in a complaint filed by the
Commission on
September 27, 1996. The complaint alleged that the defendants raised
at
least $200,000 from approximately 100 investors in at least twelve
states
by selling securities in the form of investment contracts and
approximately
$662,500 in stock options. The complaint further alleged that the
defendants sold Nu-Life memberships at prices ranging from $494 to
$12,500
by misrepresenting or failing to disclose material facts in connection
with
the offer and sale of the securities. For more information, see
SNIPPETS:
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