SEC v GARY L. MOODY, STEVEN R. MOODY, et al


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Keywords & Phrases

CaseNo: LR-18087, CourtCode: DIS, CourtName: LAKE THIRD DISTRICT COURT IN UTAH TO TWO COUNTS OF SECURITIES FRAUD, A, Defendant: Gary L. Moody, Steven R. Moody, Virtual Private Marketplace, Ltd. and Billpay Systems LLC, Plaintiff: SEC, State: WA Washington, UniqueCaseRef: SEC>LR-18087, Moody, Securities, Lake Third District, Utah, Commission, Gary Moody, Investors, Exchange Commission, Criminal Action, Salt Lake Third, Moody Brothers, Pay, Steven Moody, Civil, Guilty, Fraud, Penalty, Separate, Felony, Complaint, Money, Violating, Act, Summary Judgment, Promulgated Thereunder, Statutory Provisions, Pay Disgorgement, Plus Pre-judgment , ContentID: 120255569

Case Documents

2003-04-14

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 132859

2 pages
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Total Documents: 1 document , 2 pages

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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

SECURITIES
COURT
LAKE THIRD DISTRICT
UTAH
COMMISSION
DEFENDANTS
GARY MOODY
INVESTORS
EXCHANGE COMMISSION
CRIMINAL ACTION
SALT LAKE THIRD
MOODY BROTHERS
PAY
STEVEN MOODY
CIVIL
GUILTY
FRAUD
PENALTY
SEPARATE
FELONY
COMPLAINT
MONEY
VIOLATING
ACT
SUMMARY JUDGMENT
PROMULGATED THEREUNDER
STATUTORY PROVISIONS
PAY DISGORGEMENT
PLUS PRE-JUDGMENT

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

Litigation Release No. 18087 / April 14, 2003

   , Civil Action No. 2 02CV-0110B (D. Utah)(filed February 6, 2002).

   , Criminal Action No. 021908492 (Salt Lake Third District Court)(filed
   June 20, 2002)

   , Criminal Action No. 021908493 (Salt Lake Third District Court)(filed
   June 20, 2002)

                 MOODY BROTHERS PLEAD GUILTY TO UTAH STATE
                           CRIMINAL FRAUD CHARGES
               DEFENDANTS ARE EACH ORDERED TO PAY $1 MILLION
                       PENALTY IN SEPARATE SEC ACTION

   The Securities and Exchange Commission announced today that on April
   3, 2003, Gary L. Moody and Steven R. Moody each pled guilty in Salt
   Lake Third District Court in Utah to two counts of securities fraud, a
   second degree felony in the State of Utah, and one count of a pattern
   of unlawful activity, also a second degree felony. The Court is
   scheduled to impose a sentence on May 16, 2003.

   In a separate proceeding arising out of the same conduct, and alleged
   in a Complaint filed by the Commission on February 6, 2002 in the
   United States District Court for the District of Utah, the Court on
   January 23, 2003, ordered the Moody brothers to each pay a civil money
   penalty of $1 million.

   The Commission's Complaint alleged that beginning in 2001, Gary Moody
   and his brother Steven Moody lured investors to send their money to
   Virtual Private Marketplace, Ltd. and Billpay Systems LLC by promising
   them astronomical investment returns in a short time to be paid out in
   coupons that could be used at various retail stores. Defendants raised
   over $500,000 by falsely claiming that the Moodys were experienced
   businessmen, had raised a billion dollars, and that Gary Moody was
   soon to receive four doctorate degrees from Harvard University. In
   fact, Gary Moody is a convicted felon and Steven Moody filed for
   personal bankruptcy in 2000. In addition, there is no evidence that
   the investors' funds have been placed in income generating
   investments.

   On October 24, 2002, the Court granted the Commission's motion for
   summary judgment, finding that defendants had violated Sections 5(a),
   (c), and 17(a) of the Securities Act of 1933, Section 10(b) of the
   Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION

, Criminal Action No. 021908492 (Salt Lake Third District Court)

MOODY BROTHERS PLEAD GUILTY TO UTAH STATE

CRIMINAL FRAUD CHARGES

The Securities and Exchange Commission announced today that on April 3, 2003, Gary L. Moody

The Court is scheduled to impose a sentence on May 16,

In a separate proceeding arising out of the same conduct, and alleged in a Complaint filed by

The Commission's Complaint alleged that beginning in 2001, Gary Moody and his brother Steven

Defendants raised over $500,000 by falsely claiming that the Moodys were experienced

On October 24, 2002, the Court granted the Commission's motion for summary judgment, finding

The Court ordered that all defendants be permanently enjoined from violating these statutory


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