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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
FOREIGN BANK RECORDS COMMISSION CONTEMPT MOTION COURT CIVIL CONTEMPT OHIO SECURITIES EXCHANGE COMMISSION VIOLATION JUDGE TRADING EUROPEAN BANKS ALLEGES DISTRICT RECEIVER ORDER STEMMING ORDERED THORN CONTROL FOREIGN BANKING LAWS EVIDENTIARY HEARING HONORABLE EDMUND SARGUS UNITED STATES DISTRICT SOUTHERN DISTRICT DEFERRED RULING NEWLY APPOINTED RECEIVER REVISIT IMPOSE SANCTIONS |
U.S. SECURITIES & EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17772 / OCTOBER 7, 2002
THE COMMISSION FILED A CIVIL CONTEMPT MOTION FILED AGAINST STEVEN E.
THORN FOR FAILING TO PRODUCE FOREIGN BANK RECORDS IN VIOLATION OF
APRIL 29, 2002 COURT ORDER
, No. C2-01-290 (Judge Sargus)(S.D. Ohio)
The Securities and Exchange Commission announced today that it filed a
motion for civil contempt against defendant Steven E. Thorn for
violating an April 29, 2002 Court Order in July 24, 2002. Thorn, a
resident of the Cleveland suburb of Brecksville, Ohio, is charged with
having fraudulently raised over $70 million from hundreds of victims
purportedly to finance trading in notes issued by European banks. The
Commission has alleged that the supposed European bank trading venture
does not exist and that Thorn in fact conducted a ponzi scheme. The
Commission sued Thorn and others on April 2, 2001 and obtained a
temporary restraining order which included a provision freezing all of
Thorn's assets.
In the Court's April 29, 2002 Order stemming from Thorn's last
contempt hearing on April 5, 2002, the Court had ordered Thorn, among
other things, to produce all foreign bank records within his control.
On July 24, 2002, the Commission filed a new motion for civil contempt
against Thorn after he failed to provide any foreign bank records to
the Commission. Thorn alleges that he cannot obtain his foreign bank
records under foreign banking laws.
On September 6, 2002, after an evidentiary hearing on the Commission's
July 24, 2002 contempt motion, the Honorable Edmund A. Sargus, Jr.,
United States District Judge for the Southern District of Ohio,
deferred ruling on the Commission's motion and directed the newly
appointed receiver to obtain those foreign bank records. In the event
the receiver obtains the foreign bank records, the Court will revisit
the Commission's contempt motion and decide whether to impose
sanctions against Thorn at that time.
_________________________________________________________________
Modified 10/08/2002
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