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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
INVESTORS COMMISSION SECURITIES SCHWAB FUNDS EXCHANGE COMMISSION NORTHERN DISTRICT ELDERLY INVESTORS PAY UNITED STATES WILLIAM COURT CALIFORNIA CIVIL INJUNCTION STOCKBROKER JUDGE PERMANENT ACT COMPLAINT CLIENTS SELLING MONEY BROKERAGE ACCOUNT MUNICIPAL BONDS CIVIL MONETARY PENALTY SETTLEMENT PERMANENTLY BARRING BROKERAGE INDUSTRY |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17618 / July 16, 2002
SECURITIES AND EXCHANGE COMMISSION v. WILLIAM M. UCHEREK, United
States District Court for the Northern District of California, Civil
Action No. C-02-2003
COURT ORDERS INJUNCTION AGAINST BAY AREA STOCKBROKER WHO DEFRAUDED
ELDERLY INVESTORS IN PONZI SCHEME
The Securities and Exchange Commission announced that on June 17,
2002, Judge Joseph C. Spero, U.S. Magistrate Judge for the Northern
District of California entered a final judgment of permanent
injunction from violations of Section 17(a) of the Securities Act of
1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder against Alameda County-based stockbroker William M.
Ucherek. The Commission alleged in its complaint that Ucherek
fraudulently raised approximately $3 million from his elderly clients
by selling fictitious investments he claimed were offered by Charles
Schwab & Co. In reality, the Schwab funds he described did not exist
and he simply deposited the money into his personal brokerage account.
In a complaint filed in April, 2002, the Commission alleged that
Ucherek, through his work selling municipal bonds, developed
relationships with many elderly investors. Beginning in at least 1998,
Ucherek offered at least 20 clients investments in what he claimed
were pooled municipal bond funds that would pay a fixed rate of
interest, tax-free. Ucherek called these funds the Schwab 12, Schwab
24, and Schwab 36 (depending on the term of the investment). In fact,
no such funds exist. Ucherek used the money to pay personal expenses,
including car payments, credit card bills and gambling debts. In
addition, Ucherek used some of the proceeds to pay prior investors,
and also provided phony account statements to create the appearance of
a bona fide investment fund.
The Commission will seek disgorgement of all ill-gotten gains and a
civil monetary penalty from Ucherek. Ucherek has agreed to a
settlement permanently barring him from the brokerage industry.
_________________________________________________________________
Modified 07/17/2002
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