From today's SEC Digest:
GREAT WHITE AND ALVIS COLIN SMITH ENJOINED
The Commission announced that that on June 19, 2001, final judgments were entered in the United States District Court for the Western District of Texas, Waco Division, against Great White Marine and Recreation, Inc., a Waco-based Nevada corporation, and Alvis Colin Smith, Jr., former chairman and president, enjoining them from violating the antifraud provisions of the federal securities laws and from selling unregistered securities. Smith was also ordered to disgorge vehicles, real estate, securities and $1.6 million in cash.
Smith's son-in-law Kenneth Ursrey of Mart, Texas, a former employee of Great White, and a relief defendant, was ordered to disgorge $20,000 in cash, all Great White securities in his possession and a 1999 Ford Expedition.
In its complaint, the Commission alleged that Great White and Smith offered and sold unregistered shares of stock through false statements in press releases, in promotional brochures, in internet website postings and in a Form 10-SB filed with the Commission. The complaint alleged that Smith diverted approximately $3 million to his own uses and that Great White made a $1 million dividend payment as part of a Ponzi scheme. The Commission also charged that Smith transferred securities to Ursrey without consideration.
Earlier Smith's ex-wife Lordes G. Smith of San Antonio, Texas, had disgorged her interest in a San Antonio townhouse that had been purchased with monies obtained through Smith's fraud. [SEC v. Great White Marine & Recreation, Inc., W-99-CA-230, USDC WD/TX, Waco Division] (LR-17062)
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