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U.S. Securities and Exchange Commission

United States of America
before the
Securities and Exchange Commission

Securities Exchange Act of 1934
Release No. 48439 / September 4, 2003

INVESTMENT ADVISERS ACT OF 1940
Release No. 2166 / September 4, 2003

Administrative Proceeding
File No. 3-11242


In the Matter of

William H. Goren,

Respondent.


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ORDER INSTITUTING PUBLIC PROCEEDINGS, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against William H. Goren ("Goren") pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act").

II.

In anticipation of the institution of these administrative proceedings, Goren has submitted an Offer of Settlement of William H. Goren ("Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings set forth herein, except as to the Commission's jurisdiction over him, and the findings set forth in Paragraphs III.C. and III.D. below, which are admitted, Goren consents to the entry of this Order Instituting Public Proceedings, Making Findings and Imposing Remedial Sanctions ("Order") and to the entry of the findings and imposition of the remedial sanctions set forth below.

Accordingly, IT IS HEREBY ORDERED that public administrative proceedings be, and hereby are, instituted against Goren pursuant to Section 15(b) of the Exchange Act and Section 203(f) of the Advisers Act.

III.

On the basis of this Order and Goren's Offer, the Commission finds that:

A. From May 1993 through June 2000, Goren was associated with New Times Securities Services, Inc. ("New Times"), a broker-dealer registered with the Commission pursuant to Section 15 of the Exchange Act;

B. From 1995 through April 1998, Goren was President of, and associated with, New Age Financial Services, Inc. ("New Age"), an investment adviser registered with the Commission pursuant to Section 203 of the Advisers Act;

C. A permanent injunction was entered against Goren on July 28, 2003 by the United States District Court for the Eastern District of New York, in an action captioned Securities and Exchange Commission v. William Goren, et al., Civ. 00-0970 (TP) ("Injunctive Action"), which permanently enjoined Goren from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder;

D. Goren pled guilty to two counts of securities fraud in a parallel criminal proceeding, United States v. William H. Goren, No. 00-CR-476-ALL (TP) and, on March 9, 2001, was sentenced to 87 months in jail and required to pay more than $31 million in restitution and a $100,000 fine; and

E. In the Injunctive Action, the Commission's Complaint alleged, inter alia, that between at least 1990 and February 2000, Goren conducted a Ponzi scheme that defrauded hundred of investors, and caused investor losses in excess of $35 million. Throughout the course of the Ponzi scheme, Goren solicited investors to purchase promissory notes. Goren told investors that funds would be used for a variety of purposes, including venture capital. Goren generally promised investors a return ranging from 12% to 25%. After obtaining investors' funds, Goren deposited the monies into a New Age bank account. During the course of the Ponzi scheme, Goren also solicited individuals to invest in a non-existent money market fund known as the "New Age Securities Money Market Fund." Goren promised investors a return of 1 to 1 ½ percentage points above what investors could earn by depositing their funds in a bank account, and the promised return generally ranged from 5 ¼% to 6 ½%. After Goren obtained investors' funds, Goren deposited them into a New Age bank account. Goren then used investors' funds for a variety of undisclosed purposes, including to support a lavish lifestyle and to finance other business activities. Goren also used the funds of individuals who invested later in the Ponzi scheme to pay interest and repay principal to earlier promissory note investors and to repay investors who wanted to sell their interest in the non-existent money market fund.

IV.

Based on the foregoing, it is in the public interest to impose the sanctions specified in Goren's Offer. Accordingly,

IT IS HEREBY ORDERED, that Goren be, and hereby is, barred from association with any broker, dealer, or investment adviser.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz
Secretary

 

http://www.sec.gov/litigation/admin/34-48439.htm


Modified: 09/04/2003