Timothy R. Heyman, Heyman International, Inc., Paul D. Carter and American Financial Business, LLC.
On August 9, 2005, the SEC obtained permanent injunctions by consent against Timothy Heyman and Heyman International in connection with an alleged Ponzi scheme. According to the complaint, the defendants raised nearly $12 million from approximately 250 investors from the offer and sale of Heyman International “Depository Agreements.” On September 20, 2006, the Court ordered Heyman and Heyman International to pay a total of $4,441,005 in disgorgement and prejudgment interest and $720,000 in civil penalties.
On January 3, 2007, the SEC obtained permanent injunctions by consent against Paul Carter and American Financial Business. The SEC alleged that Carter operated a related Ponzi scheme through the offer and sale of American Financial Business “Depository Loan Agreements.” The SEC alleged that in reality Heyman and Carter used Heyman International and American Financial Business investor funds to pay other investors’ monthly “interest” payments and their personal expenses. The Court ordered Carter and American Financial Business to pay $2,095,025 in disgorgement and prejudgment interest, but waived payment of all but $378,435, based on Carter’s demonstrated inability to pay more.
For more information about the SEC’s action, you can read several litigation releases on our website.
On January 11, 2007, the Court appointed Kenneth O. Simon as Receiver to, among other things, collect funds from the defendants and distribute funds to eligible investors, subject to a Distribution Plan that the Receiver will file with the Court. For the latest information about the Receivership, you can visit the Receiver's website.