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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
INVESTMENTS SECURITIES COMMISSION ACT EXCHANGE ACT LITIGATION DISTRICT BUSINESS MARKETING SERVICE RUSSELL PERMANENT COMPLAINT PROMISSORY ESTATE FINANCIAL PLANNING SERVICES ACCORDING SOLICITED FINANCIAL INFORMATION SENIOR CITIZENS ASSETS LIQUIDATE LEGITIMATE BANK CERTIFICATES DEPOSIT SAFE INVESTMENTS NOTES PROMISING HIGHER PROMISING HIGHER RATES ISSUERS REAL BUSINESS FUNDS |
United States Securities and Exchange Commission
LITIGATION RELEASE NO. 17226 / November 8, 2001
The Commission announced that on October 29, 2001, the Honorable Jerry
Buchmeyer, U.S. District Judge, Northern District of Texas, entered
Final Judgments as to Defendants Gary Landon Davenport, Individually
and doing business as Southwest Family Trust Service, Financial
Marketing Service and Liberty Marketing Service, Richard Earl Russell,
Russell Dane Reeves and Gregory Monroe Roberts permanently enjoining
the defendants from committing future violations of Section 17(a) of
the Securities Act of 1933 ("Securities Act") and Sections 10(b),
15(a)(1) and 15(c)(1) of the Securities Exchange Act of 1934
("Exchange Act") and Rules 10b-5 and 15c1-2 thereunder. Because of
related criminal proceedings, in which the defendants were imprisoned
for terms ranging from 37 months to 20 years and were held jointly and
several liable for restitution of $2.6 million to investors, the
Commission accepted consents by the defendants to the orders of
permanent injunction and dismissed claims for disgorgement,
prejudgment interest and penalties.
The orders by the Court ends litigation commenced by the Commission on
August 30, 1999, when it filed a complaint charging that the four
defendants fleeced approximately 100 elderly individuals of some $2.5
million under the guise of providing estate and financial planning
services. According to the Commission's complaint, the defendants
solicited financial information about the senior citizens' assets and
investments, then encouraged them to liquidate their legitimate
investments, including bank certificates of deposit and other safe
investments and invest the proceeds in promissory notes promising
higher rates of return. The issuers of the notes, however, had no real
business or did not exist. Instead, the defendants misappropriated
most of the elderly investors' funds.
_________________________________________________________________
Modified 11/08/2001
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