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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES CONSUMER PLUS ALLEGES INVESTMENT EXCHANGE COMMISSION COMPLAINT ALLEGES UNITED STATES DISTRICT PALMER RESEARCH DAVID UTAH TEMPORARY RESTRAINING ORDER INJUNCTIONS ASSET FREEZE RELIEF ACT PRD GREENE JUDGE SOLICITING INVESTMENTS CONSIDERED INVESTMENT CONTRACTS SELLING AGGREGATE DOLLAR SUCCESS BUSINESS OPERATIONS MISAPPROPRIATING SIGNIFICANT PORTION PERSONAL EXPENSES THOMAS GREENE REQUESTED RELIEF |
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SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15150 / November 5, 1996
S.E.C. v. Consumer Plus, L.C., Palmer Research and Development
and David R. Palmer Civil Action No. 2:96CV-0930G (U.S.D.C., D.
Utah)
The Securities and Exchange Commission announced the filing
of a Complaint in the United States District Court for the
District of Utah, on November 4, 1996, seeking a temporary
restraining order, preliminary and permanent injunctions, an
asset freeze and other relief against Consumer Plus, L.C.
("Consumer Plus"), Palmer Research and Development ("PRD") and
David R. Palmer ("Palmer").
The Commission's Complaint alleges the defendants are
violating Sections 5(a), 5(c) and 17(a) of the Securities Act of
1933 and Section 10(b) of the Securities Exchange Act of 1934 and
Rule 10b-5 promulgated thereunder. The Commission alleges that
Palmer and PRD have been soliciting investments in the form of
interests in Consumer Plus and that these interests can be
considered investment contracts and, therefore, securities. It
is alleged that in selling these unregistered interests, Palmer
and PRD misrepresented, among other things: the aggregate dollar
value of the securities being offered, the return on investment
which could be expected, and the success of Consumer Plus'
business operations. In addition, the complaint alleges that
Palmer has been misappropriating a significant portion of the
funds invested in Consumer Plus to pay his personal expenses.
On November 5, 1996, the Honorable J. Thomas Greene, United
States District Judge, granted the Commission's application and
issued a temporary restraining order, asset freeze and the other
requested relief. Judge Greene also scheduled a November 15,
1996, hearing on the Commission's application for a preliminary
injunction.
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