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SEC v NU-LIFE INTERNATIONAL OF GEORGIA, et al Click to find out why . . .



Keywords & Phrases
CaseNo: LR-15099, Defendant: Nu-Life International of Georgia, Inc. and Gene Arthur, Plaintiff: SEC, State: GA Georgia, UniqueCaseRef: SEC>LR-15099, Complaint, Securities, Act, Complaint Alleges, Investors, Exchange Act, Georgia, Nu-life, Offering Materials State, Preliminary Injunction, Memberships, Private Retirement Plan, United States, Exchange Commission, Gene Arthur, Civil, District, Violating, Thereunder, Account, Scheme, Investment Contracts, Operating Expenses, Retirement Plan Rivaling, Fortune, Interstate/johnson Lane, Registered Broker-dealer, Seeking Orders, Permanent Injunctions , ContentID: 120242959

Case Documents
1 1996-09-30 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 106053
2 pages
TXT
Total Documents: 1 document , 2 pages
Price: $ 19.95


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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
DEFENDANTS
SECURITIES
ACT
COMPLAINT ALLEGES
INVESTORS
EXCHANGE ACT
GEORGIA
NU-LIFE
OFFERING MATERIALS STATE
PRELIMINARY INJUNCTION
MEMBERSHIPS
PRIVATE RETIREMENT PLAN
UNITED STATES
EXCHANGE COMMISSION
GENE ARTHUR
CIVIL
DISTRICT
VIOLATING
THEREUNDER
ACCOUNT
SCHEME
INVESTMENT CONTRACTS
OPERATING EXPENSES
RETIREMENT PLAN RIVALING
FORTUNE
INTERSTATE/JOHNSON LANE
REGISTERED BROKER-DEALER
SEEKING ORDERS
PERMANENT INJUNCTIONS
==========================================START OF PAGE 1======

         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 15099 / September 30, 1996

SEC v. Nu-Life International of Georgia, Inc. and Gene Arthur,
(N.D. Ga., Civil Action No. 96-2534)

     The Securities and Exchange Commission ("Commission")
announced today that on September 27, 1996, the Honorable  J.
Owen Forrester, United States District Judge for the Northern
District of Georgia, entered orders of preliminary injunction
("Orders") against Nu-Life International of Georgia, Inc. of
Dallas, Georgia and against its Chief Executive Officer, Gene
Arthur of Powder Springs, Georgia (collectively, "Defendants")
from violating Section 17(a) of the Securities Act of 1933
("Securities Act"), and Section 10(b) of the Exchange Act of 1934
("Exchange Act") and Rule 10b-5 thereunder.  The Orders freeze
the Defendants' assets and order the Defendants to preserve
records and account for proceeds received from the fraudulent
scheme.  The Defendants consented to the relief without admitting
or denying the allegations set forth in the complaint.

     The Commission's complaint alleges that from April 1996 to
the present, Defendants, have 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 is stock options to 41 of those investors.  The
complaint alleges the investment contracts involved are
memberships in a pyramid scheme, even though the business is
advertised as a legal multi-level marketing program.  The
complaint alleges that Defendants have 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 example, the complaint alleges that some of the offering
materials state that membership fees will be held in an escrow
account, when in fact Nu-Life is using the money to pay the
operating expenses of the company.  The complaint further alleges
some of the offering materials state that investors will be
enrolled in a private retirement plan rivaling that of "Fortune
500 companies" established by Interstate/Johnson Lane, a
registered broker-dealer, when in fact no such plan was
established.  The complaint also alleges that some offering
materials state that the investor will receive a guaranteed
return on his private retirement plan.

SNIPPETS:
  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  • SEC v. Nu-Life International of Georgia, Inc. and Gene Arthur, (N.D.
  • The Securities and Exchange Commission announced today that on September 27, 1996, the
  • District of Georgia, entered orders of preliminary injunction against Nu-Life International
  • The Orders freeze the Defendants' assets and order the Defendants to preserve records and
  • The Commission's complaint alleges that from April 1996 to the present, Defendants, have
  • The complaint alleges the investment contracts involved are memberships in a pyramid scheme,
  • For example, the complaint alleges that some of the offering materials state that membership
  • The complaint further alleges some of the offering materials state that investors will be
  • In addition to seeking orders of preliminary injunction, the Commission's complaint seeks
  • The Commission's complaint also seeks civil penalties with respect to each of the Defendants.
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