From today's SEC Digest:
ALVIS COLIN SMITH HELD IN CONTEMPT AND INCARCERATED
The Commission announced that on October 12 the Honorable Walter S. Smith, Jr., of the United States District Court for the Western District of Texas in Waco, held Alvis Colin Smith, Jr., of Waco, Texas, the former chairman and president of Great White Marine and Recreation, Inc., in contempt and ordered him incarcerated as a result of his failure to disgorge two vehicles and $3 million in cash as required by a June 19 final judgment.
In its complaint, the Commission had alleged that Great White and Smith had 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 also 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.
Although Smith had disgorged a 2000 Jaguar, three lots on Lake Richland Chambers (near Corsicana, Texas), assets in several bank and brokerage accounts and a $100,000 appearance bond, he had not disgorged other vehicles and cash. Judge Smith ordered Smith incarcerated until he disgorged certain vehicles and his Waco residence. Judge Smith set another hearing for October 24, 2001, to determine if any additional relief should be awarded. [SEC v. Great White Marine and Recreation, Inc., et al., Civil Action No. W-99-CV-0230, USDC, WDTX, Waco Division] (LR-17194)
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