SEC v. WORLD FINANCIAL & INVESTMENT CO., INC. AND VICTOR WILSON
The Commission announced today the settlement of claims against both
defendants in this action, filed in the U.S. District Court for the
Eastern District of New York on November 23, 1999. The two defendants
are:
ú Victor M. Wilson, age 47, of Brooklyn, New York; and
ú World Financial & Investment Co., Inc. (World Financial), an investment
advisory firm wholly-owned by Wilson that operated from Wilson's Brooklyn law
office.
The Commission's complaint alleged that Wilson, acting through World
Financial, raised approximately $1.2 million from hundreds of investors
in the United States and Dominica from March 1997 through April 1998.
The money was invested in a so-called "60-40 program" promoted by Credit
Bank International Co. (Credit Bank), which was purportedly chartered in
the "Dominion of Melchizedek." The Dominion of Melchizidek has a
website promoting itself as a sovereign entity, recognized by certain
governments. The complaint alleged that Wilson solicited U.S. investors
by falsely promising returns of over 300% and channeled funds to bank
accounts controlled by the supposed "ambassador at large" from the
Dominion of Melchizidek.
Without admitting or denying the allegations of the complaint, Wilson
and World Financial consented to final judgments that impose permanent
injunctions and other equitable relief against them. The final judgments
permanently enjoin Wilson and World Financial from committing future
violations of Sections 5(a), 5(c), 17(a) of the Securities Act of 1933,
Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5
thereunder. The final judgments further require Wilson and World
Financial to disgorge gains and interest totaling $175,000 and pay civil
penalties, but waive payment of such monies based on Wilson's and World
Financial's demonstrated inability to pay. Wilson also consented to a
Commission order barring him from associating with any investment
advisor (see prior release # 16368). [SEC v. World Financial &
Investment Co., Inc., and Victor M. Wilson, U.S. District Court, EDNY,
No. 99 CIV 7608, ILG] (LR-17054)
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