Rey Salomon, Jr., and Ellen H Development LLC
On September 25, 2008, the SEC filed a settled civil action against Rey Salomon, Jr. and Ellen H Development LLC (EHD) alleging that they fraudulently raised $903,195 from 22 investors in connection with an unregistered securities offering in an oil and gas drilling program.† The SEC also alleged that Salomon acted as an unregistered broker-dealer.†
Salomon and EHD agreed to settle the charges against them, without admitting or denying the allegations in the SECís complaint, by consenting to permanent injunctions.† In addition, the defendants agreed to pay, jointly and severally, $903,195 in disgorgement and $81,809 in prejudgment interest, for a total of $985,004.† Based on the defendantsí sworn financial statements and supporting documents, the judgments did not order Salomon and EHD to pay civil penalties and payment of $382,069 of disgorgement and pre-judgment interest was waived.† Salomon also agreed to be barred from association with any broker or dealer, with the right to reapply after 5 years.†
The Court appointed Wayne M. Secore as Special Master to submit a plan to distribution to the Court and, upon approval, to distribute funds to approved claimants.† If you have questions or believe you may be able to participate in any distribution, you can contact Mr. Secore at:
Secore & Waller, L.L.P.