UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 17814 / October 30, 2002.
, Criminal No. W-02-CR-00074, USDC WDTX (Waco Division)
Civil Action No. W-99-CA-230, USDC WDTX (Waco Division)
On October 18, 2002, the Honorable Walter S. Smith, Jr., United States
District Judge for the Western District of Texas at Waco, sentenced
Waco resident, Alvis Colin Smith, Jr., to 30 months in jail and
ordered that a restitution amount be determined at a January 24, 2003
hearing. Smith had previously entered a guilty plea on May 16, 2002,
to one count of securities fraud and one count of mail fraud.
The criminal information to which Smith pled guilty charged that from
October, 1997 through July, 1999, Smith raised over $4.3 million from
the fraudulent sale of unregistered shares in Great White Marine and
Recreation, Inc. (f/k/a Tiger Shark of Texas, Inc.), a Waco-based
corporation. As part of his fraudulent scheme, Smith, among other
things, falsely represented Great White's business prospects,
overstated its earnings and revenues and caused the corporation to pay
an unwarranted stock dividend. The information also alleged that Smith
fraudulently obtained a $310,000 home equity loan from San Antonio
Federal Credit Union. Smith was previously convicted of bank fraud in
1987 and served five years on probation.
The criminal case arose, in part, from an earlier Commission lawsuit
filed on June 29, 1999 against Smith and Great White. In the
Commission action, Judge Smith permanently enjoined Smith from further
violating the federal securities laws and ordered that he surrender
seven vehicles, three Lake Corsicana lots, his interest in a
townhouse, all securities that he owned, a $100,000 appearance bond,
certain Mexican assets and $3 million in cash. When Smith failed to
make the required disgorgement, Judge Smith cited him for contempt on
October 11, 2001, and ordered him incarcerated until he complied with
the Court's order. Smith has been incarcerated since October 11th. The
Commission and a court-appointed agent have seized and liquidated
assets, recovering more than $1.8 million for the benefit of
investors.
_________________________________________________________________
Modified 10/30/2002
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Civil Action No. W-99-CA-230, USDC WDTX (Waco Division)
On October 18, 2002, the Honorable Walter S. Smith, Jr., United States District Judge for the
Smith had previously entered a guilty plea on May 16, 2002, to one count of securities fraud
The criminal information to which Smith pled guilty charged that from October, 1997 through
As part of his fraudulent scheme, Smith, among other things, falsely represented Great
The criminal case arose, in part, from an earlier Commission lawsuit filed on June 29, 1999
In the Commission action, Judge Smith permanently enjoined Smith from further violating the
When Smith failed to make the required disgorgement, Judge Smith cited him for contempt on
The Commission and a court-appointed agent have seized and liquidated assets, recovering more
|
