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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES EXCHANGE COMMISSION INVESTORS CIVIL MUSTANG CIVIL ACTION CHARGES FRAUDULENT OIL GAS SCHEME ADMINISTRATIVE PROCEEDING LITIGATION OPERATING UNITED STATES CALIFORNIA STUDIO CITY PONZI PARTNERSHIP PERMANENT CONTEMPT VIOLATING COURT FILINGS ALLEGE CIVIL JUDGMENT MAKING FRAUDULENT STATEMENTS STOCK BROADBAND CONCEPTS TECHNOLOGIES PRESENTLY INCARCERATED PENDING |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17235 / November 15, 2001
Securities and Exchange Commission v. Mustang Development Corporation,
Tower Operating Company, Neal B. Stein, Cary S. Greene and Samuel
Embras, Jr., Civil Action No. 97-0440 JGD (CTx) (C.D. Cal.)
United States of America v. Cary S. Greene, CR 00-167-MMM (C.D. Cal.)
The United States Attorney for the Central District of California
announced that on November 9, 2001, a Studio City man was sentenced on
federal criminal charges arising out of a fraudulent oil and gas
offering scheme. Cary S. Greene, age 40, of Studio City, California,
was sentenced to 46 months for securities fraud and tax evasion
following his guilty plea to the charges in May 2000.
The U.S. Attorney's Office prosecuted Greene for his participation in
a fraudulent "Ponzi" scheme that offered and sold oil and gas limited
partnership interests. Greene was an officer, director and part owner
of Mustang, which raised about $139 million from thousands of
investors nationwide. While investors were told that their funds would
be used to purchase oil and gas properties, in fact, Greene 1)
commingled the assets of the partnerships; 2) operated a Ponzi scheme
by using millions of dollars from new investors to pay old investors
their purported "returns;" and 3) misappropriated millions of dollars
from investors for personal uses.
In April 1997, Greene was permanently enjoined in a civil action by
the Securities and Exchange Commission based on the same underlying
conduct. See Litigation Release 15359, May 5, 1997. Greene was also
barred from the securities industry in a related Commission
administrative proceeding. See Administrative Proceeding File No.
3-9445, September 29, 1997.
Earlier this month, the U.S. Attorney's Office and the Commission
filed criminal and civil contempt proceedings against Greene for
violating the permanent injunction entered in the Commission's Mustang
action. The U.S. Attorney's and Commission's court filings allege that
Greene violated the Commission's civil judgment by making fraudulent
statements in the offer of stock in Broadband Concepts & Technologies,
Inc. Greene is presently incarcerated pending trial on the criminal
contempt charges.
_________________________________________________________________
Modified 11/16/2001
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