THOMAS A. ZACCARO, Cal. Bar No. 183241
KELLY BOWERS, Cal. Bar No. 164007
MARTIN J. MURPHY, Cal. Bar No. 130693
NAN PRONGAY, Cal. Bar No. 133055
Attorneys for Plaintiff
Securities and Exchange Commission
RANDALL R. LEE, Regional Director
SANDRA J. HARRIS, Associate Regional Director
5670 Wilshire Boulevard, 11th Floor
Los Angeles, California 90036-3648
Telephone: (323) 965-3998
Facsimile: (323) 965-3908
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
SECURITIES AND EXCHANGE COMMISSION,
Case No. CV 02-6479 AHM
:
Plaintiff, (JTLx)
:
:
vs. COMPLAINT FOR
: VIOLATIONS OF THE
:
GARY A. EISENBERG, FEDERAL SECURITIES
: LAWS
Defendant.
Plaintiff Securities and Exchange Commission ("Commission") alleges:
JURISDICTION AND VENUE
1. This Court has jurisdiction over this action pursuant to Sections 20(b) and 22(a) of the
Securities Act of 1933 ("Securities Act"), 15 U.S.C. §§ 77t(b) and 77v(a), and Sections
21(d)(1) & (e) and 27 of the Securities Exchange Act of 1934 ("Exchange Act"), 15
U.S.C. §§ 78u(d)(1) & (e) and 78aa. The defendant, directly or indirectly, made use of
the mails, means or instruments of transportation or communication in interstate
commerce, or the means or instrumentalities of interstate commerce, in connection with
the transactions, acts, practices and courses of business alleged in this Complaint.
2. This Court is an appropriate venue for this action, pursuant to Section 27 ofthe
SNIPPETS:
Attorneys for Plaintiff Securities and Exchange Commission
This Court has jurisdiction over this action pursuant to Sections 20and 22of the Securities
The defendant, directly or indirectly, made use of the mails, means or instruments of
courses of business constituting violations of the laws alleged herein occurred within the
This case involves fraud in the offer and sale of interests in four limited partnerships
From about September 1994 to about October 2001, Eisenberg offered and sold interests in the
He represented to investors that their funds would be used for factoring accounts receivable
Although a substantial amount of investor funds were in fact advanced for accounts receivable
No registration statement was filed or in effect with respect to the offer and sale of the
As a result of his conduct, Eisenberg violated the registration provisions of the Securities
He controlled the activities of the limited partnerships and their general partners, Advance
Advance Finance Partnership ("AFP I"), Advance Finance Partnership II, Advance Finance
From about September 1994 until about October 2001, Eisenberg offered and sold securities in
Eisenberg represented to investors orally and in writing that the purpose of the Partnerships
Eisenberg further represented that the AFI entities would in turn loan investor funds to
Eisenberg sent or caused to be sent monthly statements to each investor, which included
Furthermore, starting in approximately 1997, Eisenberg began to represent to investors in AFP
Eisenberg failed to disclose the facts set forth in paragraphs 29, 30, 31 and 32 to investors
As a result of the operating deficit, Eisenberg used approximately $9.8 million of investor
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