 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC LITIGATION RELEASE
|
EXTRACTED KEY WORDS
INVESTORS SECURITIES COMPLAINT UNITED STATES EXCHANGE COMMISSION COURT INVESTOR FUNDS BANK KATHY DALLAS UNITED STATES DISTRICT FEDERAL SECURITIES LAWS VIOLATING ACCOUNTING ALLEGES ACT SIGNIFICANT PORTION PURCHASE EXPENSIVE FLORIDA VACATION FLORIDA VACATION HOME MISUSE LULL BANK STATEMENT SHOWING BALANCE ORDER PERMANENTLY ENJOINING ORDERS REQUIRING DISGORGEMENT WRONGFULLY OBTAINED PROFITS ASSESSING CIVIL PENALTY |
==========================================START OF PAGE 1======
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15078 \ September 26, 1996
SECURITIES AND EXCHANGE COMMISSION v. KATHY S. KINGSMORE
3:96-CV-2615-X, USDC, ND/TX (Dallas Division)
The Securities and Exchange Commission ("Commission")
announced the filing of a complaint on September 16, 1996, in
United States District Court, Dallas, Texas, against Kathy S.
Kingsmore ("Kingsmore") seeking emergency relief under the
federal securities laws. The Honorable Joe Kendall, United States
District Judge, granted the Commission's request for a temporary
restraining order prohibiting Kingsmore from violating the
antifraud provisions of the federal securities laws, and
appointed a temporary receiver to recover funds and assets for
the benefit of investors who invested with Kingsmore. The Court
also set September 26, 1996, as the date for an evidentiary
hearing on the Commission's motion for a preliminary injunction,
and ordered that Kingsmore file a sworn accounting of her
financial condition with the Court prior to that date.
The Commission's complaint alleges that Kingsmore violated
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,
in the offer and sale of purported "Prime Bank" investments in
the form of Eurobonds, which she claimed were fully insured by a
trust account she maintained at Barclay's Bank in London.
According to the complaint, Kingsmore, who promised some
investors that they would double their money in as little as two
weeks, raised at least $3 million from approximately 34 investors
in several states. The complaint further alleges that Kingsmore
misappropriated a significant portion of investor funds for her
own personal use, including for the purchase of an expensive
Florida vacation home, and, in order to hide her misuse of
investor funds and to lull her investors, created and provided
false financial statements to investors, including a false
personal bank statement showing a balance of $32 million.
The complaint also seeks an order permanently enjoining
Kingsmore, and orders requiring disgorgement of all wrongfully
obtained profits, and assessing a civil penalty.
SNIPPETS:
|
|
|
| | | |
|
|
