UNITED STATES OF AMERICA
In the Matter of
D. DEAN PEARSON,
TO SECTION 15(b) OF THE
ACT OF 1934, MAKING
FINDINGS AND IMPOSING
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be and hereby are instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act"), against D. Dean Pearson ("Pearson").
In anticipation of the institution of these proceedings, Pearson has submitted an Offer of Settlement to the Commission which the Commission has determined to accept. Solely for the purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party and, without admitting or denying the findings contained herein, except as to entry of the injunction described below and the Commission's jurisdiction over him and over the subject matter of this proceeding, which are admitted, Pearson consents to the institution of public administrative proceedings, and the findings and remedial sanctions set forth below.
On the basis of this Order and the Offer of Settlement submitted by Pearson, the Commission finds that:
A. Pearson, age 50, is a resident of Woodstock, Georgia, and the president of Global Management Enterprises. He is also an owner of Paramount Holdings, LLC, Premiere Holdings, Ltd., and Pearson Enterprises Trust.
B. From approximately May 1996 to October 1999, Pearson was acting as an unregistered broker-dealer.
C. On October 15, 1999, the Commission filed a Complaint in the United States District Court for the Southern District of New York against Pearson's affiliates captioned SEC v. Charles Richard Homa, et al. On October 18, 1999, the action was transferred to the Northern District of Illinois and assigned case number 99 C 6895. On June 1, 2000, the Commission filed its Amended Complaint, naming Pearson.
D. The Commission's Amended Complaint alleges that from May 1996 through October 1999, Pearson and other defendants violated the federal securities laws by fraudulently engaging in a $314 million Ponzi scheme involving at least 1000 investors. The Amended Complaint alleges that Pearson, as part of an extensive sales network developed by Charles Richard Homa ("Homa") and Michael Gause ("Gause"), offered and sold securities, in the form of promissory notes and bonds issued by Paramount Holdings, LLC, Premiere Holdings, Ltd., and Pearson Enterprises Trust, which purported to provide returns through investments in the car title and payday loan business. The Amended Complaint alleges Pearson raised at least $44 million. Further, the Amended Complaint alleges that the investment funds were not used in the car title or payday loan business, but rather were used to make interest payments to existing investors, to pay marketer commissions, and for personal expenditures of Homa and Gause. The Amended Complaint alleges that Pearson and other defendants made misrepresentations and omissions of material fact concerning the use of investor funds and failed to disclose the source of the interest payments and that the notes and receivables purportedly securing certain offerings were insufficient security. The Amended Complaint also alleges that Pearson, in the course of marketing the securities, acted as an unregistered broker-dealer.
E. On July 31, 2000, in SEC v. Homa, the Honorable Ronald A. Guzman entered an order enjoining Pearson from violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b), 15(a), and 15(c) of the Exchange Act and Rules 10b-5 and 15c1-2 promulgated thereunder. Pearson, without admitting or denying the allegations in the Complaint, consented to Judge Guzman's Order.
In view of the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer of Settlement of D. Dean Pearson.
Accordingly, IT IS ORDERED that Respondent D. Dean Pearson is barred from association with any broker or dealer.
By the Commission.
Jonathan G. Katz
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