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SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 14742 / November 30, 1995
SECURITIES AND EXCHANGE COMMISSION v. ROBERT D. GERSH, BOSTON
MUNICIPAL SECURITIES, INC. AND DEVONSHIRE ESCROW AND TRANSFER
CORP., Defendants, and MA'AYAN BOOK COMPANY, INC., CHARLES RIVER
LANDING, LTD., CRL GROUP, INC., CULINARY CLASSICS OF CHESTNUT
HILL, INC., CULINARY CLASSICS OF BURLINGTON, INC., THE KITCHEN
SHELF, INC., AND THE COMPU-BILL CO., INC., Relief Defendants,
Civil Action No. 95-12580(RCL)(D. Massachusetts, filed November
29, 1995)
The Securities and Exchange Commission announced the filing
of a complaint in the United States District Court for the
District of Massachusetts, seeking a temporary restraining order,
preliminary and permanent injunctions, disgorgement, civil
monetary penalties and an asset freeze and other equitable relief
against Defendants Robert D. Gersh ("Gersh"), of Burlington,
Massachusetts, Boston Municipal Securities ("BMS"), and
Devonshire Escrow and Transfer Corp. ("Devonshire") and Relief
Defendants Ma'Ayan Book Company, Charles River Landing, Ltd., CRL
Group, Inc., Culinary Classics of Chestnut Hill, Inc., Culinary
Classics of Burlington, Inc., The Kitchen Shelf, Inc. and the
Compu-Bill Co., Inc. ("Relief Defendants"). The complaint
alleges violations of Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 promulgated thereunder and Section
17(a) of the Securities Act of 1933.
On November 30, 1995, the Honorable Reginald C. Lindsay
granted the Commission's request for an ex parte Temporary
Restraining Order, and an order freezing assets of the Defendants
and Relief Defendants, requiring an accounting of these assets
and granting other relief. A Hearing on the Commission's
application for a Preliminary Injunction has been set for
December 12, 1995.
The complaint alleges that from early 1990 to the present,
Defendant Gersh and two of his wholly-owned corporate entities,
Defendants BMS and Devonshire, offered and sold securities in the
form of Certificates of Participation ("COPs") in 34 securities
offerings which raised approximately $14 million from investors
in at least six states. In connection with the offer and sale of
these securities, the complaint alleges that the Defendants have
engaged in continuing fraudulent acts which include the
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BEGINNING OF PAGE #1 -------------------SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. ROBERT D. GERSH,
MUNICIPAL SECURITIES, INC.
AND DEVONSHIRE ESCROW AND TRANSFER
CORP., Defendants, and MA'AYAN BOOK COMPANY, INC., CHARLES RIVER
LANDING, LTD., CRL GROUP, INC., CULINARY CLASSICS OF CHESTNUT HILL, INC., CULINARY CLASSICS
SHELF, INC., AND THE COMPU-BILL CO., INC., Relief Defendants, Civil Action No. 95-12580(D.
Massachusetts, filed November
The Securities and Exchange Commission announced the filing of a complaint in the United
rles River Landing, Ltd., CRL Group, Inc., Culinary Classics of Chestnut Hill, Inc., Culinary
The complaint alleges violations of Section 10of the Securities Exchange Act of 1934 and Rule
On November 30, 1995, the Honorable Reginald C. Lindsay granted the Commission's request for
The complaint alleges that from early 1990 to the present, Defendant Gersh and two of his
In connection with the offer and sale of these securities, the complaint alleges that the
The complaint alleges that, to induce public investors to invest in these COPs, the
In fact, however, Gersh only used a portion of the proceeds to invest in state and local
Gersh commingled the proceeds of the investments and misappropriated the monies to invest in
Three other Gersh COPs issues, consisting of the Westchester County, NY 1981 G Lane,
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