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SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 14785 / January 18, 1996
SECURITIES AND EXCHANGE COMMISSION v. ROBERT D. GERSH, BOSTON
MUNICIPAL SECURITIES, INC. AND DEVONSHIRE ESCROW AND TRANSFER
CORP., Defendants, and MA'AYAN BOOK COMPANY, INC., CHARLES RIVER
LANDING, LTD., CRL GROUP, INC., CULINARY CLASSICS OF CHESTNUT
HILL, INC., CULINARY CLASSICS OF BURLINGTON, INC., THE KITCHEN
SHELF, INC., AND THE COMPU-BILL CO., INC., Relief Defendants,
Civil Action No. 95-12580(RCL)(D. Massachusetts, filed November
29, 1995)
The Securities and Exchange Commission announced that, on
January 12, 1996, after a hearing, the Honorable Reginald C.
Lindsay granted the Commission's request for a preliminary
injunction against Defendants Robert D. Gersh ("Gersh"), of
Burlington, Massachusetts, Boston Municipal Securities ("BMS"),
and Devonshire Escrow and Transfer Corp. ("Devonshire") and
Relief Defendants Ma'Ayan Book Company, Charles River Landing,
Ltd., CRL Group, Inc., Culinary Classics of Chestnut Hill, Inc.,
Culinary Classics of Burlington, Inc., The Kitchen Shelf, Inc.
and the Compu-Bill Co., Inc. ("Relief Defendants"). The order,
which supersedes a prior temporary restraining order issued by
the court, continues to freeze the Defendants' assets and to
require that the Defendants provide an accounting.
The Commission's complaint, filed ex parte in the United
States District Court for the District of Massachusetts, alleged
violations of Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated thereunder and Section 17(a) of
the Securities Act of 1933 and sought a temporary restraining
order, preliminary and permanent injunctions, disgorgement, civil
monetary penalties and an asset freeze and other equitable
relief. On November 30, 1995, the Court granted the requested
relief. In addition, on December 11, 1995, the Court granted the
Commission's motion for appointment of a receiver to take control
of the assets of the corporate and Relief Defendants, and those
assets are being operated by the receiver for the benefit of
investors.
The Commission's complaint alleged that from early 1990 to
the present, Defendant Gersh and two of his wholly-owned
corporate entities, Defendants BMS and Devonshire, offered and
sold securities in the form of Certificates of Participation
SNIPPETS:
BEGINNING OF PAGE #1 -------------------SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. ROBERT D. GERSH,
MUNICIPAL SECURITIES, INC.
AND DEVONSHIRE ESCROW AND TRANSFER
CORP., Defendants, and MA'AYAN BOOK COMPANY, INC., CHARLES RIVER
LANDING, LTD., CRL GROUP, INC., CULINARY CLASSICS OF CHESTNUT HILL, INC., CULINARY CLASSICS
SHELF, INC., AND THE COMPU-BILL CO., INC., Relief Defendants, Civil Action No. 95-12580(D.
Massachusetts, filed November
The Securities and Exchange Commission announced that, on January 12, 1996, after a hearing,
., The Kitchen Shelf, Inc. and the Compu-Bill Co., Inc..
The order, which supersedes a prior temporary restraining order issued by the court,
The Commission's complaint, filed ex parte in the United States District Court for the
In addition, on December 11, 1995, the Court granted the Commission's motion for appointment
The Commission's complaint alleged that from early 1990 to the present, Defendant Gersh and
In connection with the offer and sale of these securities, the complaint alleged that the
BEGINNING OF PAGE #2 -------------------fact, however, Gersh only used a portion of the
Gersh commingled the proceeds of the investments and misappropriated the monies to invest in
The complaint further alleged that Gersh's failure to use investor proceeds as represented
The complaint further alleged that Gersh falsely represented that a portion of investor
Two other Gersh COPs issues, consisting of Livingston County, NY and Onondaga County, NY,
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