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U.S. Securities and Exchange Commission

Mobile Billboards of America, Inc., et al.

On September 21, 2004, the SEC obtained permanent injunctions, asset freezes, and other relief against Mobile Billboards of America Inc. and others in connection with a Ponzi scheme. The SEC alleged the defendants fraudulently sold more than $60.5 million of mobile billboard investments to more than 700 investors nationwide. According to the complaint, the defendants leased the billboards back from investors for monthly payments equal to 13.49% annually. The SEC alleged that the business did not generate sufficient advertising revenue to make the payments to investors and, instead, relied on new investor money.

For more information about the SEC's action, you can read Litigation Release No. 18893 (Sept. 23, 2004). In addition, you can read about the SECís administrative proceeding against Michael Lomas and Michael Young who were the companyís Chairman and President respectively.

The Court appointed Greg Hays as Receiver. You can find more information on the Receiverís website.

 

http://www.sec.gov/divisions/enforce/claims/mobilebillboards.htm


Modified: 11/15/2004