UNITED STATES SECURTIES AND EXCHANGE COMMISSION
Litigation Release No. 17200 / October 22,2001
Securities and Exchange Commission v. Vestron Financial Corp., et al.,
Case No. 01-4269-CIV-SEITZ (USDC/SD FL)
The Securities and Exchange Commission ("SEC") announced that on
October 16, 2001, the SEC filed a Complaint against Vestron Financial
Corporation ("Vestron Financial"), a company with principal offices in
Miami, alleging that Vestron Financial had raised more than $11.6
million from about 350 investors across the nation and overseas
through the sale of unregistered securities. That same day, the
Honorable Patricia A. Seitz, United States District Judge for the
Southern District of Florida, entered an emergency Order to
temporarily freeze the assets of Vestron Financial and that of its
founder and president, Salman Shariff ("Shariff"), who was last known
to reside in Miami Beach, Florida. Vestron was purportedly in the
business of trading stocks and commodities.
In its Complaint and application to the Court for a temporary asset
freeze order, which the Court granted, the SEC also alleged that
Vestron Financial had lured investors into investing with the company
through false promises of high returns and under the false pretense
that their money would be used to engage in stock and commodities
trading. More specifically, according to the SEC's complaint, of the
$11.6 million raised from investors, only 14% of these funds were
actually used for stock and commodities trading. Instead, the
complaint alleges that defendant Shariff has misappropriated at least
$2.082 million in investor funds for his own personal use, including
the purchase of a condominium, a boat, cars and other personal items.
In addition, the SEC alleges that defendants were engaged in a Ponzi
scheme, whereby investors who chose to receive their purported monthly
gains in cash were paid out of new investor funds, as the little
trading that was done was far from profitable.
Named as defendants in the SEC's Complaint in addition to Vestron
Financial and Shariff were
* Vestron Investment Club, a North Carolina general partnership that
sold securities to investors and was managed by Vestron Financial.
* Crescent Capital Partners, LP, a Florida limited partnership that
sold securities to investors and was managed by Vestron Financial
as a U.S.-based hedge fund.
* Crescent Capital Offshore Fund, a Bahamas limited partnership that
sold securities to investors and was managed by Vestron Financial
as an offshore-based hedge fund.
Named as relief defendants in the SEC's Complaint were
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UNITED STATES SECURTIES AND EXCHANGE COMMISSION
Securities and Exchange Commission v. Vestron Financial Corp., et al., Case No.
The Securities and Exchange Commission announced that on October 16, 2001, the SEC filed a
That same day, the Honorable Patricia A. Seitz, United States District Judge for the Southern
In its Complaint and application to the Court for a temporary asset freeze order, which the
More specifically, according to the SEC's complaint, of the $11.6 million raised from
Instead, the complaint alleges that defendant Shariff has misappropriated at least $2.082
In addition, the SEC alleges that defendants were engaged in a Ponzi scheme, whereby
Named as defendants in the SEC's Complaint in addition to Vestron Financial and Shariff were
* Crescent Capital Partners, LP, a Florida limited partnership that sold securities to
* Crescent Capital Offshore Fund, a Bahamas limited partnership that sold securities to
Named as relief defendants in the SEC's Complaint were * North Coast Holdings, Ltd., a
The Commission charges Vestron Financial and Shariff with violations of Sections 5, 5and 17of
The SEC is also seeking in this lawsuit a preliminary order, which would continue the asset
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