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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES COMPLAINT COMPLAINT ALLEGES INVESTORS BROKERAGE FIRM EXCHANGE JOHN DANKOVICH PAY ACT MORGAN ACCOUNT EXCHANGE COMMISSION DISTRICT PURCHASE INTEND STOCK LINDA DANKOVICH VIOLATING INVESTMENT CLUB FILING SELL ACCORDING PERSONAL EXPENSES SEPARATE REGULATION SALES FUNDS CASH ACCOUNT REPRESENTING |
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 14847 / March 20, 1996
SECURITIES AND EXCHANGE COMMISSION v. JOHN DANKOVICH AND LINDA
DANKOVICH, United States District Court for the District of
Columbia, Civil Action No. 96-CV00550 (LFO).
The Securities and Exchange Commission ("Commission")
announced the filing today of a Complaint in the United States
District Court for the District of Columbia against John and
Linda Dankovich, residents of Miramar, Florida. The Complaint
alleges that the Dankoviches pretended to be securities brokers
and in telephone solicitations offered to sell specific
securities to investors at a discount. According to the
Complaint, however, the Dankoviches actually used the
approximately $44,000 they obtained from investors for their own
personal expenses. The Complaint also alleges that John
Dankovich separately caused a brokerage firm to purchase
securities for which he never intended to pay. The Complaint
charges both Dankoviches with violating Section 17(a) of the
Securities Act of 1933 ("Securities Act") and Sections 10(b),
15(a) and 15(c) of the Securities Exchange Act of 1934 ("Exchange
Act"), and Rules 10b-5, 15b1-1 and 15c1-2 thereunder, and John
Dankovich with also violating Sections 7(f) of the Exchange Act
and Regulation X promulgated by the Board of Governors of the
Federal Reserve System ("Regulation X") in connection with these
activities.
Specifically, the Complaint alleges that from in or about
July 1994 through in or about April 1995, defendant John
Dankovich contacted potential investors and claimed to be an
employee of the securities brokerage firm of T. Morgan &
Associates. The Complaint alleges that Dankovich used high
pressure sales tactics to convince investors to purchase various
"featured" securities, which were actually listed securities that
Dankovich claimed to be able to sell for a below market price.
The Complaint alleges that T. Morgan was not a registered
securities broker, but was Linda Dankovich's sole proprietorship,
and that she used funds investors sent to T. Morgan for personal
expenses. The Complaint alleges that investors paid at least
$43,877 to T. Morgan during this time period.
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