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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
CAPITAL CONSULTANTS COMMISSION BARCLAY CIVIL PENALTY SECURITIES EXCHANGE COMMISSION LLC PORTLAND AMENDED JUDGMENT PERMANENT INJUNCTION INVESTMENT CLIENT FINANCIAL CONDITION COMMISSION STAFF FATHER JEFFREY FRAUD OBTAINED EMERGENCY RELIEF DEFENDANTS OPERATING UNDISCLOSED PONZI-LIKE SCHEME CLIENT FUNDS PAYMENTS LOAN WILSHIRE CREDIT COURT ENTERED PERMANENT RECEIVERSHIP RELATED CRIMINAL ACTION PRISON |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17405 / March 7, 2002
SEC v. Capital Consultants, LLC, et al., Civil Action No. CV 1290 KI
(D. Ore.)
SEC CONCLUDES CASE AGAINST BARCLAY L. GRAYSON
The Securities and Exchange Commission (Commission) announced that on
February 26, 2002, a federal judge in Portland, Oregon, entered an
amended judgment of permanent injunction against Barclay L. Grayson, a
principal of Capital Consultants, LLC, an investment adviser located
in Portland. The remaining issue in the case was the assessment of a
civil penalty against Grayson. The amended judgment does not assess a
civil penalty against Grayson based upon sworn statements of financial
condition that he submitted to the Commission staff.
The Commission charged Capital Consultants, Barclay Grayson and his
father, Jeffrey L. Grayson with fraud and obtained emergency relief
against them in September 2000. The complaint alleged that the
defendants were operating an undisclosed Ponzi-like scheme in which
they used client funds to make interest payments to other clients who
were invested in a $160 million loan that Capital Consultants made to
Wilshire Credit Corp. On April 30, 2001, the Court entered permanent
injunctions against Capital Consultants and the Graysons. Capital
Consultants is currently in receivership. In a related criminal
action, Barclay Grayson was recently sentenced to two years in prison.
_________________________________________________________________
Modified 03/07/2002
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