U. S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15923 / October 2, 1998
SECURITIES AND EXCHANGE COMMISSION v. NOLAN W. WADE, NOLAN W.
WADE d/b/a/
CAPITAL FINANCIAL CONSULTANTS, and CHARLES E. CAMPBELL, Civil
Action No. 98-1857-S (W.D. La.)
SEC ALLEGES FRAUD IN CONNECTION WITH
DEFENDANTS' EFFORTS TO TAKE COMPANIES PUBLIC
On September 29, 1998, the Securities and Exchange
Commission sued Nolan W. Wade ("Wade") and Charles E. Campbell
("Campbell"), for fraudulently offering and selling securities in
connection with their efforts to take several companies public.
The complaint alleges that the defendants made a number of false
and misleading representations and omissions regarding the
expected return on investment, the escrowing of investors' funds,
the use to which investors' funds would be put, the repayment of
investors' funds, and the process of bringing the companies, in
which the investors invested, public. The complaint also alleges
that the defendants raised over $1.8 million from numerous
investors in at least seven states and misappropriated for thier
own purposes a significant amount of these investors' funds. The
alleged antifraud violations occurred at least from 1993 through
July 1997 in connection with the offer and sale of the securities
of EarthNet Companies, Inc., International Equity Resources,
Inc., Mississippi Motorplex, Inc., Bio-Solutions of Louisiana,
Inc., Blacklidge International, Inc., and CFC Income and Growth
Fund. The complaint additionally alleges that Wade was engaged
in the business of a securities broker and dealer but was not
registered as required by federal securities law.
The Commission filed this action in federal court in
Shreveport, Louisiana. The Commission charged Wade and Campbell
with violating Section 17(a) of the Securities Act of 1933 and
Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder. The Commission also charged Wade with
violating Section 15(a) of the Securities Exchange Act for being
an unregistered broker and dealer. The Commission is seeking
permanent injunctions, disgorgement of all ill-gotten gains plus
prejudgment interest, civil penalties, and sworn accountings.
sec.gov
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