UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act Release No. 41267 \ April 9, 1999
Administrative Proceeding File No. 3-9869
In the Matter of Craig Freeman, William Lashbrook, and
Robert Sewell
The Commission announced the entry of an Order
instituting public administrative proceedings pursuant to
Sections 15(b) and 19(h) of the Securities Exchange Act of
1934 (Order) against Craig Freeman, William Lashbrook
(Lashbrook), and Robert Sewell (Sewell) based upon their
previous criminal convictions for their respective roles in
a $24 million nation-wide ponzi scheme.
The Order alleges that in June 1996, Craig Freeman was
convicted of one count of money laundering, Lashbrook was
convicted of one count of wire fraud and one count of money
laundering, and Sewell was convicted of one count of mail
fraud in the United States District Court for the Eastern
District of Missouri. The criminal indictment upon which
these criminal convictions were based alleged, among other
things, that beginning on or about June 1, 1994, Craig
Freeman, Lashbrook, and Sewell participated with James G.
Freeman and others in the marketing and sales of
approximately $24 million in unregistered promissory notes
(the Freeman notes). The indictment further alleged that in
connection with the offer and sale of the Freeman notes,
Craig Freeman, Lashbrook and Sewell, directly and
indirectly, misrepresented and omitted to state material
facts regarding, among other things, the nature of the
investments, the risks involved, the use of investor
proceeds, the commissions to be paid, and the returns on the
investment.
A hearing will be held before an administrative law
judge to determine whether the staff’s allegations against
Craig Freeman, Lashbrook and Sewell are true, and if so,
what sanctions, if any, are appropriate in the public
interest against them.
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act Release No. 41267 \ April 9,
Administrative Proceeding File No. 3-9869
1934 against Craig Freeman, William Lashbrook
, and Robert Sewell
The Order alleges that in June 1996,
convicted of one count of money laundering,
convicted of one count of wire fraud and one count of money
fraud in the United States District Court for the Eastern
these criminal convictions were based alleged,
Freeman and others in the marketing and sales of
The indictment further alleged that in
connection with the offer and sale of the Freeman notes,
facts regarding, among other things, the nature of the
investments, the risks involved, the use of investor
proceeds, the commissions to be paid, and the returns on the
A hearing will be held before an administrative law
judge to determine whether the staff’s allegations against
what sanctions, if any, are appropriate in the public
|
