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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION CONTEMPT CHARGES ASSET MANAGEMENT PRELIMINARY INJUNCTION TRO FEDERAL COURT CIVIL CONTEMPT CHARGES RMO ASSETS MANAGEMENT LEFEBVRE ASSET FREEZES DISTRICT INVESTORS CALIFORNIA ALLEGING FRAUD CAPITAL MANAGEMENT LLC LITIGATION SECURITIES UNITED STATES CRIMINAL AUTHORITIES CLAUDE LEFEBVRE CO-DEFENDANTS RECEIVED FUNDS CLIENTS FINANCIAL INSTITUTION ACCOUNTS PRELIMINARY INJUNCTION REQUIRING COMMISSION ALLEGES TEMPORARY RESTRAINING ORDER |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Rel. No. 17965 / February 4, 2003
Commission Files Civil Contempt Charges Against
Watch Hill Capital Management LLC in Securities Fraud Case
The Commission announced that, on January 31, 2003, it filed civil
contempt charges against Watch Hill Capital Management LLC, alleging
that the company violated a federal court order issued in a civil
fraud case filed by the Commission. On July 31, 2002, the Commission
filed a complaint in federal court in California alleging that Watch
Hill and others participated in a fraudulent "prime bank" scheme that
raised at least $40 million from investors in July 2002. The United
States District Court for the Northern District of California issued a
temporary restraining order ("TRO") and asset freezes against Watch
Hill and others on August 1, 2002, and converted the TRO to a
preliminary injunction on October 15, 2002. In its contempt
application, the Commission alleges that Watch Hill has failed to
comply with the court's order in the TRO and preliminary injunction
requiring Watch Hill to identify, among other things, its financial
institution accounts and investors or clients from whom it received
funds.
The Commission previously filed contempt charges against two of Watch
Hill's co-defendants, Claude Lefebvre and RMO Assets Management SA, on
September 30, 2002. For further information, please see Litigation
Release Numbers (October 18, 2002)(preliminary injunction against
Watch Hill and others); (October 1, 2002)(contempt charges against
Lefebvre and RMO Assets Management); (September 17, 2002)(Lefebvre
charged by criminal authorities and incarcerated); and (August 2,
2002)(Commission obtains TRO and asset freeze).
_________________________________________________________________
Modified 02/04/2003
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