Continental Wireless Cable Television, Inc.
On May 11, 1994, the SEC filed an enforcement action against Jay Bishop, Robin McPherson, and Gene Cardenaz alleging they fraudulently raised approximately $41 million from at least 2,700 investors through Continental Wireless Cable Television, Inc. The SEC alleged that the defendants sold securities to purportedly purchase and market two wireless cable television systems, but only used $4 million for that purpose and misappropriated the remaining amount. For more information about the SEC's action, you can read Litigation Release Nos. 14690 (Oct. 16, 1995), 14800 (Jan. 29, 1996), 15347 (Apr. 23, 1997), and 15528 (Oct. 6, 1997).
On July 12, 1994, the Court appointed Thomas F. Lennon as Receiver. He has overseen the operation of one of the systems and disposed of the assets. The Receiver has so far returned approximately $4.9 million or 35 cents on the dollar to approved investors. Depending on the outcome of an appeal before the U.S. Court for the Ninth Circuit, the Receiver may be able to make another (although much smaller) distribution.