SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 17217 / November 1, 2001
SECURITIES AND EXCHANGE COMMISSION v. MICHAEL E. HILL, INDIVIDUALLY
AND DOING BUSINESS AS FINANCIAL INVESTMENTS, AND MIKE HILL, INC., et
al. (U.S.D.C., Northern District of Texas, Dallas Division, Civil
Action No. 3 01-CV-2189-X)
On November 1, 2001, at the Commission's request, Judge Joe Kendall of
the United States District Court for the Northern District of Texas,
issued orders freezing the assets and halting securities law
violations by Michael E. Hill, a Dallas-area broker, and his company,
Mike Hill, Inc. ("MHI"). Hill and MHI are accused of engaging in a $4
million securities scam, which targeted senior citizens. The court
also appointed a receiver to recover and preserve assets for the
benefit of the victims of the scam. These orders were entered in a
civil lawsuit filed by the Commission on October 31, 2001.
In its action, the Commission accuses Hill of offering bogus
certificates of deposit (CDs) to his elderly brokerage clients and to
the general public through newspaper advertisements. Hill lured his
investors with promises of above-market rates on 30-month CDs
purportedly issued by a Dallas-area bank. In fact, Hill never
purchased the CDs for his investors. Instead he pooled about $4
million of investor funds in a bank account in the name of MHI, which
he controlled. From there, Hill transferred a substantial portion of
the funds into a brokerage account, also in MHI's name, in which he
traded risky securities. Hill also used investor funds to make ponzi
payments of interest and principal to investors and for his own
personal benefit, including more than $500,000 to purchase an office
building complex. Hill still owes about $2 million in principal, plus
accrued interest, to investors, who he is fraudulently rolling over
into new 30-month investments.
The Commission has charged the following defendants and relief
defendant in its action
* Defendant Michael Earl Hill, age 55 and a resident of Plano,
Texas, has conducted business under the assumed name, Financial
Investments, since at least 1984. Hill was a registered
representative with several broker-dealers between 1991 and the
present. He is currently licensed, but unassociated with any
broker-dealer.
* Defendant MHI is a Texas domestic corporation. It is wholly owned
by Hill and has its principal place of business in Plano, Texas.
MHI also operates under the d/b/a Financial Investments. All
investor funds raised in this scheme were deposited in bank and
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. MICHAEL E. HILL, INDIVIDUALLY AND DOING BUSINESS AS
On November 1, 2001, at the Commission's request, Judge Joe Kendall of the United States
The court also appointed a receiver to recover and preserve assets for the benefit of the
These orders were entered in a civil lawsuit filed by the Commission on October 31,
the Commission accuses Hill of offering bogus certificates of deposit (CDs) to his elderly
Hill lured his investors with promises of above-market rates on 30-month CDs purportedly
Instead he pooled about $4 million of investor funds in a bank account in the name of MHI,
From there, Hill transferred a substantial portion of the funds into a brokerage account,
Hill also used investor funds to make ponzi payments of interest and principal to investors
Hill still owes about $2 million in principal, plus accrued interest, to investors, who he is
The Commission has charged the following defendants and relief defendant in its action *
MHI also operates under the d/b/a Financial Investments.
The Commission's complaint charges Hill, individually and d/b/a Financial Investments, and
The complaint seeks a temporary restraining order, preliminary and permanent injunctions, an
The Commission would like to thank the Texas State Securities Board, United States Postal
|
