From today's SEC Digest:
SHOW CAUSE ORDER ISSUED AGAINST CLAUDE SAVAGE
The Commission announced today that the Honorable Richard W. Story, United States District Judge for the Northern District of Georgia, entered an Order To Show Cause why Defendant Claude W. Savage (Savage) should not be held in civil contempt for his violation of the Court's August 24, 1999 order requiring him to pay disgorgement.
The Commission's complaint, filed on March 16, 1998, alleged that International Heritage, Inc. (IHI), through Savage and others, solicited individuals throughout the United States to invest in a pyramid scheme.
On August 24, 1999, a final judgment of permanent injunction was entered against Savage, restraining and enjoining him from further violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Savage consented to the entry of this permanent injunction without admitting or denying the allegations of the Commission's complaint. The Court ordered disgorgement against Savage in the amount of $2,251,491, but due to a demonstrated inability to pay, the Court ordered him to pay $50,000, waived payment of the remaining disgorgement, pre-judgment and post-judgment interest, and did not impose a civil penalty. The Commission's application for an order to show cause alleged that Savage had failed to pay the disgorgement required by the final judgment.
Investors are advised to read the SEC's "Cyberspace" Alert before purchasing any investment promoted on the Internet. The free publication, which alerts investors to the telltale signs of online investment fraud, is available on the Investor Assistance and Complaints link of the SEC's Home Page on the World Wide Web www.sec.gov. It can also be obtained by calling 800-SEC-0330. Investors are encouraged to report suspicious Internet offerings (or other suspicious offerings) via e-mail to enforcement@sec/gov. A user-friendly form to assist you in making a report is available at the Enforcement Complaint Center on the Enforcement Division link of the SEC Home Page www.sec.gov. Investors can also mail a report to the SEC's Enforcement Complaint Center, Mail Stop 0804, 450 Fifth Street, Washington, D.C. 20549. For further information see LR-15672 (March 17, 1998); LR-16264 (August 26, 1999); LR-16330 (October 7, 1999); and LR-16407 (January 10, 2000). [SEC v. International Heritage, Inc., Stanley H. Van Etten, Claude W. Savage, Larry G. Smith, and International Heritage, Incorporated, Civil Action No. 1:98-0803-CV-RWS, NDGA] (LR-16531)
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