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U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 14815 / February 12, 1996
SECURITIES AND EXCHANGE COMMISSION v. CITI FINANCIAL SERVICES,
CITI CORP REALTY PARTNERS IV, HAROLD GOLDSTEIN, RICHARD THOMAS
MANDELL, a.k.a. MARK MORGENLENDER, ROBERT SINGLETON, MARK
BARQUERA, a.k.a. MARK CABRERRO and ROBERTA CRAMPTON, Civil Action
No. 96-0349 WJR (BQRx) (C.D. Cal.)
The Securities and Exchange Commission ("Commission")
announced that on February 9, 1996, it obtained a preliminary
injunction against the defendants in the above matter. The
Commission had previously obtained a temporary restraining order
against the defendants on January 18, 1996. In that proceeding,
the Court stopped the defendants' sale of fictitious certificates
of deposit which they falsely claimed were issued by Citibank in
New York and insured by the federal government. The preliminary
injunction continues to bar the defendants from committing the
fraudulent sales.
In its lawsuit, which was filed in the United States
District Court for the Central District of California, the
Commission obtained an order preliminarily enjoining the
following entities and individuals from future violations of the
antifraud provisions of the federal securities laws: Citi
Financial Services ("Citi Financial"); Citi Corp Realty Partners
IV ("CCRP"); Harold Goldstein ("Goldstein"), an inmate at the
federal correctional facility in Lompoc, California; Richard
Thomas Mandell ("Mandell"), of Los Angeles, who is currently on
federal parole; Robert Singleton ("Singleton"), of Salt Lake
City, Utah, who is also currently on federal parole; Mark
Barquera of Los Angeles, a convicted felon; and Roberta Crampton
of Duluth, Georgia. The order also continues an asset freeze
against defendants Citi Financial, CCRP, Goldstein, Mandell and
Singleton.
The Commission's Complaint alleged that the scheme was
directed by Goldstein, an inmate from federal prison, and
executed by several paroled felons living in Los Angeles and Salt
Lake City. In selling the fictitious instruments, the defendants
conducted a nationwide newspaper and direct marketing campaign
aimed at luring elderly investors into purchasing the bogus
securities. Since the scheme began in October 1995, the
defendants have defrauded individual investors out of
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. CITI FINANCIAL SERVICES,
CITI CORP REALTY PARTNERS IV, HAROLD GOLDSTEIN, RICHARD THOMAS
MANDELL, a.k.a. MARK MORGENLENDER, ROBERT SINGLETON, MARK BARQUERA, a.k.a. MARK CABRERRO and
The Securities and Exchange Commission announced that on February 9, 1996, it obtained a
the Court stopped the defendants' sale of fictitious certificates of deposit which they
IV; Harold Goldstein, an inmate at the federal correctional facility in Lompoc, California;
The Commission's Complaint alleged that the scheme was directed by Goldstein, an inmate from
In selling the fictitious instruments, the defendants conducted a nationwide newspaper and
In addition, the Commission has learned that in response to the defendants' marketing
The Complaint also alleges that inmate Goldstein directed parolee Mandell to create two
to assume the identity of "Mark Morgenlender," an actual executive employed by Citicorp, and
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