U.S. SECURITIES & EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17208 / October 25 , 2001
U.S. Securities and Exchange Commission v. James R. Harrold, Franklin
Management and Consulting, LLC, Accipter, LLC, Franklin Asset
Management and Consulting, LLC, Franklin Management and Consulting,
Inc., and Concord Development Group, LLC., U.S. District Court for the
Southern District of Indiana, Cause No. IP 01-1318-C H/K (S.D. Indiana
2001)
Receiver Appointed in Prime Bank Case
The U.S. Securities and Exchange Commission ("Commission") announced
that on October 19, 2001, the Honorable Judge David F. Hamilton of the
United States District Court for the Southern District of Indiana
appointed James A. Knauer, a partner at the law firm of Kroger, Gardis
& Regas, LLP in Indianapolis, Indiana, as the receiver in this matter.
On September 7, 2001 the Commission filed a complaint alleging that
James R. Harrold ("Harrold") and the Entity Defendants were violating
the registration and antifraud provisions of the federal securities
laws by operating a prime-bank scheme. On the same day, Judge Hamilton
entered a Temporary Restraining Order freezing three accounts
controlled by Harrold. On September 10, 2001, Judge Hamilton entered a
Temporary Restraining Order freezing all of Harrold and the Entity
Defendants' assets. On September 14, 2001, Harrold and the Entity
Defendants consented to the entry of an Order of Permanent Injunction,
which continued the asset freeze and enjoined them from engaging in
violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of
1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder. Harrold and the Entity Defendants consented to the
entry of the permanent injunction, without admitting or denying the
allegations of the complaint.
Under the Court's Receiver Order, Mr. Knauer is empowered to take
possession of all of Harrold and the Entity Defendants' assets and to
search for any hidden or undisclosed assets. Mr. Knauer is required to
file an inventory and appraisal of all property and assets of Harrold
and the Entity Defendants within thirty (30) days, or such longer time
as the Court may approve, of his appointment.
Investors or other interested parties should direct any questions to
Mr. Knauer at Kroger, Gardis & Regas, LLP, 111 Monument Circle, Suite
900, Indianapolis, Indiana, 46204-5125, telephone (317) 692-9000, fax
(317) 264-6832. The firm's website is .
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SNIPPETS:
U.S. SECURITIES & EXCHANGE COMMISSION
U.S. Securities and Exchange Commission v. James R. Harrold, Franklin Management and
Management and Consulting, LLC, Franklin Management and Consulting, Inc., and Concord
Receiver Appointed in Prime Bank Case
The U.S. Securities and Exchange Commission announced that on October 19, 2001, the Honorable
2001 the Commission filed a complaint alleging that James R. Harrold and the Entity
On September 10, 2001, Judge Hamilton entered a Temporary Restraining Order freezing all of
On September 14, 2001, Harrold and the Entity Defendants consented to the entry of an Order
Harrold and the Entity Defendants consented to the entry of the permanent injunction, without
Mr. Knauer is empowered to take possession of all of Harrold and the Entity Defendants'
Mr. Knauer is required to file an inventory and appraisal of all property and assets of
Investors or other interested parties should direct any questions to Mr. Knauer at Kroger,
The firm's website is.
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