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SEC v ALPHA TELCOM, INC., et al Click to find out why . . .



Keywords & Phrases
CaseNo: LR-17145, CourtName: THEM. THE COURT (1) GRANTED THE COMMISSION S APPLICATION FOR A, Defendant: Alpha Telcom, Inc., American Telecommunications Company, Inc., Strategic Partnership Alliance, LLC, SPA Marketing, LLC, Paul S. Rubera, Robert A. McDonald, Ross S. Rambach and Mark E. Kennison, Plaintiff: SEC, State: OR Oregon, UniqueCaseRef: SEC>LR-17145, Securities, Spa, Rambach, Kennison, Investors, Exchange, Commission, Spa Marketing, Act, Preliminary Injunction, Violations, Llc, Rubera, Mcdonald, Enjoins, Registration Provisions, Alpha Telcom, United States, Complaint Alleges, Broker-dealer Registration Provisions, Committing Violations, District, Oregon, Securities Fraud, Restraining, Operating, Scheme, Money , ContentID: 120246598

Case Documents
1 2001-09-20 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 116064
2 pages
TXT
Total Documents: 1 document , 2 pages
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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
SPA
DEFENDANTS
RAMBACH
KENNISON
INVESTORS
EXCHANGE
COMMISSION
SPA MARKETING
ACT
PRELIMINARY INJUNCTION
VIOLATIONS
LLC
RUBERA
MCDONALD
ENJOINS
REGISTRATION PROVISIONS
ALPHA TELCOM
UNITED STATES
COURT
COMPLAINT ALLEGES
BROKER-DEALER REGISTRATION PROVISIONS
COMMITTING VIOLATIONS
DISTRICT
OREGON
SECURITIES FRAUD
RESTRAINING
OPERATING
SCHEME
MONEY
U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17145 / September 20, 2001

   SECURITIES AND EXCHANGE COMMISSION v. ALPHA TELCOM, INC., AMERICAN
   TELECOMMUNICATIONS COMPANY, INC., STRATEGIC PARTNERSHIP ALLIANCE, LLC,
   SPA MARKETING, LLC, PAUL S. RUBERA, ROBERT A. MCDONALD, ROSS S.
   RAMBACH and MARK E. KENNISON (D.ORE.) (CV-01-1283 PA)

   The United States Securities and Exchange Commission ("Commission")
   announced that on September 6, 2001, the Honorable Owen M. Panner,
   United States District Judge for the District of Oregon, issued a
   preliminary injunction halting a $100 million securities fraud by Paul
   S. Rubera ("Rubera"), Robert A. McDonald ("McDonald"), Ross S. Rambach
   ("Rambach"), Mark E. Kennison ("Kennison") and entities controlled by
   them. The Court (1) granted the Commission's application for a
   preliminary injunction (2) continued, as to certain defendants, the
   asset freeze contained in the temporary restraining order issued by
   the Court on August 27, 2001, (3) appointed a permanent receiver, (4)
   prohibited the destruction of documents by the defendants, and, (5)
   ordered accountings from the defendants. Trial in the case is
   scheduled for October 29, 2001.

   The Commission's complaint alleges that since 1997, Rubera, McDonald,
   Rambach and Kennison, and entities controlled by them (Alpha Telcom,
   Inc. ("Alpha"), American Telecommunications Company, Inc. ("ATC"),
   Strategic Partnership Alliance LLC ("SPA") and SPA Marketing, LLC
   ("SPA Marketing")) raised at least $100 million from over 7,000
   investors nationwide, purportedly for investments in pay telephones,
   and promising investors a 14% annual return. The complaint alleges
   that, in fact, Rubera, McDonald, Rambach and Kennison, and the
   entities controlled by them, are operating a massive Ponzi-like scheme
   in which Alpha and ATC's payphone operations are losing money, but the
   defendants are making payments to existing investors with the money
   that they obtain from new investors. In addition, the complaint
   alleges that Rambach, Kennison, SPA and SPA Marketing have been acting
   as unregistered brokers in connection with the offer and sale of
   investments in the defendants' scheme.

   The Commission obtained a preliminary injunction restraining the
   defendants from committing securities fraud in violation of Section
   17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b)
   of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
   thereunder. The Court's injunction also preliminarily enjoins the
   defendants from committing violations of the securities registration
   provisions of Sections 5(a) and 5(c) of the Securities Act. The
   Court's injunction further preliminarily enjoins Rambach, Kennison,
   SPA and SPA Marketing from committing violations of the broker-dealer
SNIPPETS:
  • U.S. SECURITIES AND EXCHANGE COMMISSION
  • SECURITIES AND EXCHANGE COMMISSION v. ALPHA TELCOM, INC., AMERICAN
  • The Court granted the Commission's application for a preliminary injunction continued, as to
  • The Commission's complaint alleges that since 1997, Rubera, McDonald, Rambach and Kennison,
  • raised at least $100 million from over 7,000 investors nationwide, purportedly for
  • The complaint alleges that, in fact, Rubera, McDonald, Rambach and Kennison, and the entities
  • In addition, the complaint alleges that Rambach, Kennison, SPA and SPA Marketing have been
  • The Commission obtained a preliminary injunction restraining the defendants from committing
  • The Court's injunction also preliminarily enjoins the defendants from committing violations
  • The Court's injunction further preliminarily enjoins Rambach, Kennison, SPA and SPA Marketing
  • The Commission would like to acknowledge the assistance of the State of Oregon Division of
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