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SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 14739 / November 28, 1995
SECURITIES AND EXCHANGE COMMISSION v. JOHN ACORD, THE BUSINESS
AND TAXPAYERS COALITION FOR AFFORDABLE HOUSING, SUSAN HALL,
DOUGLAS KENNETT, EQUITY ASSURANCE CORPORATION, MICHAEL MEDKIFF,
GREAT WESTERN MANAGEMENT CORPORATION and SEAN ORTEGA.
USDC/ND TX/Dallas Div/Civil Action No. CA-3:95-CV-2728-T
The Securities and Exchange Commission today announced the
filing on November 15, 1995, of a Complaint in the United States
District Court for the Northern District of Texas, Dallas
Division, against John Acord ("Acord"), The Business and
Taxpayers Coalition for Affordable Housing ("Coalition"), Susan
Hall ("Hall"), Douglas Kennett ("Kennett"), Equity Assurance
Corporation ("EAC"), Michael Medkiff ("Medkiff"), and Great
Western Management Corporation ("Great Western").
The Complaint alleges that each of the defendants violated
the anti-fraud provisions (Section 17(a) of the Securities Act of
1933 ("Securities Act") and Section 10(b) of the Securities
Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder)
of the securities laws. Each defendant, except Medkiff and Great
Western, also is alleged to have violated the securities
registration provisions (Sections 5(a) and 5(c) of the Securities
Act) of the securities laws. The Complaint also alleges that
Kennett, EAC, Medkiff and Great Western violated the broker-
dealer registration provision (Section 15(a) of the Exchange Act)
of the securities laws. The Complaint seeks an accounting, civil
penalties and disgorgement from each defendant. The Commission
alleges that from at least May 1991 until May 1994 the defendants
raised at least $9.7 million from over 813 investors through the
offer and sale of interests in limited partnerships formed to
invest in low-income housing properties. The Commission also
alleges that the defendants made false and misleading statements
of material facts concerning, among other things, the intended
uses for investors' funds, the condition and value of the
underlying properties and the attendant likelihood of profitable
operations. The Complaint further alleges that investor monies
were used, among other things, to make fraudulent profit
distributions to prior investors and for the personal expenses of
defendants Acord, Hall and Kennett. In addition, the Complaint
alleges that defendant Acord diverted investor monies to his
brother Sean Ortega ("Ortega"), who was named as a defendant
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. JOHN ACORD, THE BUSINESS
AND TAXPAYERS COALITION FOR AFFORDABLE HOUSING, SUSAN HALL, DOUGLAS KENNETT, EQUITY ASSURANCE
The Securities and Exchange Commission today announced the filing on November 15, 1995, of a
Hall, Douglas Kennett, Equity Assurance Corporation, Michael Medkiff, and Great Western
The Complaint alleges that each of the defendants violated the anti-fraud provisions of the
Each defendant, except Medkiff and Great Western, also is alleged to have violated the
The Complaint also alleges that Kennett, EAC, Medkiff and Great Western violated the
The Commission alleges that from at least May 1991 until May 1994 the defendants raised at
The Complaint further alleges that investor monies were used, among other things, to make
In addition, the Complaint alleges that defendant Acord diverted investor monies to his
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