Here's a Ponzi scheme using promissory notes from Friday's SEC notices even:
JENO KOCH SUSPENDED FROM ASSOCIATION WITH BROKER OR DEALER AND BARRED FROM PARTICIPATING IN ANY OFFERING OF PENNY STOCK
On September 30, the Commission instituted administrative proceedings against Jeno K. Koch (Koch). The Commission simultaneously accepted Koch's Offer of Settlement, providing for an Order suspending him from association with a broker or dealer for one year. The Order alleges that on April 26, 1999, a final judgment of permanent injunction was entered, by consent, against Koch, permanently enjoining him from violations of Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934. Securities and Exchange Commission v. James T. Staples, et al., Civil Action No. 98-1061-CIV-22C (M.D. Fla.). According to the Order, the Commission's civil complaint alleged that Koch violated the registration and broker-dealer registration provisions of the federal securities laws in 1995 and 1996 when he sold securities in the form of promissory notes and penny stock issued by LSI Holdings Inc. and its subsidiary, Legend Sports, Inc.(Legend Sports). The civil complaint charged Legend Sports, a company formerly based in Altamonte Springs, Florida, with operating a Ponzi scheme by using proceeds from the sale of the promissory notes and penny stock to pay interest and dividends to investors, commissions to its salesmen and the expenses of company officers and other parties unrelated to its business. (Rel. 34-41949; File No. 3-10054)
http://www.sec.gov/news/digests/10-01.txt |
