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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
EISENMENGER MESSENGER ILLINOIS DISTRICT EXCHANGE COMMISSION SOLD COMPLAINT ALLEGES CUSTOMERS RICHARD LEROY DISTRICT COURT NORTHERN DISTRICT RESIDENT FUNDS PAY INVESTMENTS GENEVA JUDGMENTS ACT DISGORGE DENYING ALLEGATIONS ENTRY ENJOIN FUTURE VIOLATIONS THEREUNDER ORDER EISENMENGER WAIVE PAYMENT PENALTIES |
Securities and Exchange Commission
Litigation Release No. 17162 / September 28, 2001
Securities and Exchange Commission v. Richard M. Eisenmenger and Leroy K.
Messenger, U.S. District Court for the Northern District of Illinois, Civil
Action No. 01 C 7506 (N.D. Ill. September 28, 2001)
The Commission today filed securities fraud charges in the United
States District Court for the Northern District of Illinois against
Richard M. Eisenmenger, a resident of McHenry, Illinois, and LeRoy K.
Messenger, a resident of Elk Grove Village, Illinois, for making
material misrepresentations regarding securities they sold in
companies they owned.
The Complaint alleges that Eisenmenger and Messenger sold over $11
million of preferred stock and notes of companies they owned while
making material misstatements about the use of the funds raised, the
debts the companies would become obligated to pay, and the collateral
protecting the investments. Eisenmenger and Messenger were formerly
the President and Chief Financial Officer, respectively, of Geneva
Securities, Inc., a defunct broker-dealer formerly based in
Schaumburg, Illinois. Further, the Complaint alleges that Eisenmenger
sold investments that were unsuitable for some of his customers, many
of whom were elderly and retired, used customer funds to purchase
securities without their permission, and diverted assets of certain
customers to the accounts of Geneva-affiliated companies.
Eisenmenger and Messenger have consented, without admitting or denying
the allegations in the Complaint, to the entry of Final Judgments
which will enjoin them from future violations of Sections 17(a)(1),
(2) and (3) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The
Judgments will also order Eisenmenger and Messenger to disgorge
$3,480,000 and $2,711,000, respectively, but waive payment of
disgorgement and seek no penalties due to their demonstrated inability
to pay.
_________________________________________________________________
Modified 10/01/2001
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