U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17408 / March 12, 2002
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 March 1, 2002, the Honorable Owen M. Panner, United
States District Judge for the District of Oregon, entered a final
judgment imposing a permanent injunction and other relief against
defendant Paul S. Rubera. On February 8, 2002, the Court also entered
a final judgment by consent against defendant Alpha Telcom, Inc.
("Alpha") imposing a permanent injunction and other relief. This case
involved the sale of approximately $135 million of investments in pay
telephones where new investors' funds were secretly used to pay
purported returns to existing investors.
The final judgment against Paul Rubera permanently enjoins him from
violating the securities registration provisions of Sections 5(a) and
5(c) of the Securities Act of 1933 ("Securities Act") and orders that
he pay disgorgement of $3,750,707.66 and prejudgment interest of
$416,976.97. The Court granted judgment in favor of Rubera on the
Commission's fraud claims under Section 17(a) of the Securities Act
and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange
Act") and Rule 10b-5 thereunder, and declined to assess a civil
penalty.
The final judgment against Alpha enjoins Alpha from violating Sections
5(a), 5(c) and 17(a) of the Securities Act, as well as Section 10(b)
of the Exchange Act and Rule 10b-5 thereunder. The final judgment
against Alpha also names Thomas F. Lennon, who had previously been
named the Preliminary Receiver over Alpha, as the Permanent Receiver,
orders Alpha to pay disgorgement pursuant to a plan of distribution to
be approved by the Commission, the Court, and the Bankruptcy Court in
the District of Oregon where Alpha's bankruptcy is being adjudicated
and administered, and reserves the Commission's right to seek civil
penalties against Alpha in the event the Permanent Receiver collects
monies and assets exceeding the net amount owed to investors. On
November 5, 2001, the Court entered final judgments against the other
entity defendants, American Telecommunications Company, Inc. ("ATC"),
Strategic Partnership Alliance, LLC ("SPA"), and SPA Marketing, LLC
("SPA Marketing"), granting the same relief and, in addition,
enjoining SPA and SPA Marketing from violating the broker-dealer
registration provisions of Section 15(a) of the Exchange Act. In each
instance, the Receiver, on behalf of the entity defendant, consented
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
The United States Securities and Exchange Commission announced that, on March 1, 2002, the
On February 8, 2002, the Court also entered a final judgment by consent against defendant
This case involved the sale of approximately $135 million of investments in pay telephones
The final judgment against Paul Rubera permanently enjoins him from violating the securities
The Court granted judgment in favor of Rubera on the Commission's fraud claims under Section
The final judgment against Alpha also names Thomas F. Lennon, who had previously been named
collects monies and assets exceeding the net amount owed to investors.
On November 5, 2001, the Court entered final judgments against the other entity defendants,
On November 2, 2001, the Court entered a default judgment against defendants Ross Rambach and
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