UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 41434 \ May 21, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9907
In the Matter of
FRED F. LIEBAU, JR.
Respondent
ORDER INSTITUTING PUBLIC
ADMINISTRATIVE PROCEEDINGS,
MAKING FINDINGS, AND IMPOSING
REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate and in the public interest that public administrative
proceedings pursuant to Sections 15(b) and 19(h) of the Securities
Exchange Act of 1934 ("Exchange Act") be instituted against Fred F.
Liebau, Jr. ("Liebau").
II.
In anticipation of the institution of these proceedings, Liebau has
submitted an Offer of Settlement ("Offer") which the Commission has
determined to accept. Liebau admits the jurisdiction of the Commission
over him and over the subject matter of the administrative proceedings
proposed to be instituted against him by the Commission. Solely for
the purpose of this proceeding and any other proceeding brought by or
on behalf of the Commission or in which the Commission is a party, and
without admitting or denying the findings contained herein, except the
findings in paragraph III.A., which Liebau admits, Liebau consents to
the entry of this Order Instituting Public Administrative Proceedings,
Making Findings, and Imposing Remedial Sanctions ("Order") making the
findings and imposing the remedial sanctions set forth below.
Accordingly, IT IS ORDERED that proceedings pursuant to Sections 15(b)
and 19(h) of the Exchange Act be, and they hereby are, instituted.
III.
On the basis of this Order and the Offer, the Commission makes the
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL
The Securities and Exchange Commission deems it appropriate and in the public interest that
Liebau admits the jurisdiction of the Commission over him and over the subject matter of the
Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of
Accordingly, IT IS ORDERED that proceedings pursuant to Sections 15and 19of the Exchange Act
It operated on an introducing and fully-disclosed basis, with its principal place of business
It ceased operations on December 16, 1997 and is currently being liquidated through the
Liebau, age 50, resides in the Wichita area and is a co-founder and 50 percent owner of
During that period, Ameen operated a Ponzi scheme that victimized at least 97 people,
Ameen promised his victims that these debentures would pay a high monthly return, but then
Liebau was Ameen's chief supervisor from 1994 until Ameen left Primeline in 1997.
Liebau failed to adequately investigate complaints and inquiries from Primeline customers
Liebau, for example, learned that one customer had been receiving monthly payments drawn on
On or about December 14, 1998, Ameen pleaded no contest to, and was judged guilty on, three
the Commission deems it appropriate and in the public interest to impose the sanctions
Liebau be suspended from association with any broker or dealer for a period of three months,
Liebau shall provide to the Commission, within 30 days after the end of the three-month
Liebau shall, within ten days of the entry of the Order, pay a civil money penalty pursuant
Such payment shall be made by United States postal money order, certified check, bank
etter and money order or check shall be sent to Daniel F. Shea, Securities and Exchange Commission,
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