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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES EXCHANGE COMMISSION CIVIL CONTEMPT MOTION DEFENDANTS INJUNCTION ORDER FREEZE LITIGATION COURT VIOLATION ACT COMPLAINT ALLEGES ALLEGATIONS ASSETS SPENT FUNDS FRAUD MISCONDUCT THEREUNDER PONZI SCHEME INVESTORS PRIME BANK TRADING PROGRAM ADMITTING DENYING INJUNCTION PROCEEDINGS FROZE MORTGAGE LOANS |
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17152 / September 26, 2001.
SEC v. John E. Brinker, Jr., Gary J. Bentz, et al., Civil Action No.
IP01-0259 C-H/G (S.D. Ind.).
The U.S. Securities and Exchange Commission ("Commission") announced today
that it filed a motion seeking to have Gary J. Bentz ("Bentz") held in civil
contempt.
In February 2001, Hon. David F. Hamilton of the U.S. District Court in
Indianapolis entered an order permanently enjoining Bentz and other
defendants from engaging in fraud and other misconduct in violation of
Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections
10(b), 15(a), and 15(c) of the Securities Exchange Act of 1934, and
Rules 10b-5 and 15c1-2 thereunder. The Commission's complaint alleges
that Bentz and others operated a Ponzi scheme which raised
approximately $7.1 million from hundreds of investors in a "prime
bank" trading program. Bentz and the other defendants consented to the
injunction order without admitting or denying the allegations in the
complaint. (For more detail on the Commission's allegations and the
injunction proceedings, see Litigation Release No.16915.)
The injunction order also froze the assets of Bentz and the other
defendants. In its current motion, the Commission alleges that shortly
before the asset freeze, Bentz obtained approximately $72,000 through
mortgage loans, and after the freeze, he spent those funds in
violation of the freeze. Accordingly, the motion asks the court to
hold Bentz in civil contempt and order him to replace the spent funds.
_________________________________________________________________
Modified 09/26/2001
SNIPPETS:
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