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1
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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
GAINES WOMACK COMMISSION EXCHANGE ACT ADMINISTRATIVE PROCEEDINGS INVESTOR COMPLAINT ICC PAY UNITED STATES FLORIDA ALLEGATIONS DISTRICT SECURE INVESTOR FUNDS SALES INTERNATIONAL CAPITAL CORPORATION ACCORDING RISK-FREE RISK FREE WITHDRAWN BANK ACCOUNTS PERSONAL EXPENDITURES INVESTMENT CONTRACTS ALLEGES BROKERS DEALERS ADMINISTRATIVE LAW JUDGE SANCTIONS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 41958 / September 30, 1999
ADMINISTRATIVE PROCEEDING FILE NO. 3-10064
The Commission announced today that it has instituted public
administrative proceedings, pursuant to Section 15(b) of the
Securities Exchange Act of 1934 ("Exchange Act"), against Frank Gaines
("Gaines") of Lebanon, Indiana and Taft Womack ("Womack") of St.
Petersburg, Florida. The administrative proceedings are based upon
allegations that both Gaines and Womack have been enjoined by default
by the United States District Court for the Middle District of Florida
against violating Sections 5(a), 5(c), 17(a)(1), 17(a)(2) and 17(a)(3)
of the Securities Act of 1933, and Sections 10(b) and 15(a) of the
Exchange Act and Rule 10b-5 thereunder.
The injunction is based upon a complaint filed by the Commission
alleging that from at least 1994 through 1997 Gaines, Womack, and
others fraudulently offered and sold $3.3 million of unregistered
securities offered by International Capital Corporation 2000 ("ICC
2000"). According to the Commission's complaint, Gaines, Womack, and
others misrepresented that the ICC 2000 securities were secure and
risk-free. In fact, investor funds were not secure and risk free
because investor funds were withdrawn from the bank accounts in which
they had been deposited and used to pay off earlier investors, to pay
sales commissions, and to pay for personal expenditures of other
individuals involved in the sale of ICC 2000 investment contracts. The
Commission's complaint also alleges that Gaines and Womack acted as
brokers or dealers while not registered with the Commission.
A hearing will be held before an administrative law judge to determine
whether the staff's allegations are true, and if so, what sanctions,
if any, are appropriate against Gaines and Womack.
_________________________________________________________________
Modified 10/01/1999
SNIPPETS:
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