U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission


Litigation Release No. 19829 / September 13, 2006

SEC v. Indigenous Global Development Corporation, et al., United States District Court for the Northern District of California, Civil Action No. C-06-5600-JCS

SEC Files Fraud Charges Against San Francisco-Based Microcap Company

San Francisco, September 13, 2006 - The Securities and Exchange Commission today filed securities fraud charges against Indigenous Global Development Corporation (IGDC) alleging that it, along with its chief executive officer, Deni G. Leonard, raised more than $2 million from investors through a series of materially false and misleading statements about IGDC's purported natural gas business. IGDC, based in San Francisco, Calif., promoted itself as the first public company in the United States majority-owned by Native Americans and continually hyped its progress on strategic initiatives which it claimed would provide a better future for Native American communities. IGDC in fact was teetering on the brink of extinction. It never earned any revenue, had no significant assets, and was dependent on funding from investors. It is now essentially defunct, according to the Commission's complaint.

The Commission alleges that to continue attracting investors, IGDC and Leonard made a series of false statements in press releases and SEC filings about IGDC's ability to purchase gas from indigenous peoples in Canada at a discount and then resell that gas into the United States for a significant profit. These statements were designed to keep investors falsely believing that IGDC was poised to reap millions from its natural gas program. For example, IGDC in 2004 falsely promoted a Canadian company's agreement to attempt to buy natural gas on its behalf by describing the agreement as a contract that allowed IGDC to purchase and sell 90 billion cubic feet of natural gas from Canada into the United States in the next fiscal year. The Canadian company, however, had no gas to sell to IGDC. In 2005, IGDC embellished the terms of preliminary agreements with two Canadian indigenous groups to explore the purchase and sale of their natural gas by falsely claiming the groups already had agreed to sell it natural gas worth $9 to $15 million. IGDC also misrepresented its ability to pay for the natural gas. In 2005, for example, IGDC exaggerated an investment group's preliminary interest in purchasing products from IGDC by falsely telling the public it had obtained a $100 million investment for its energy programs.

The Commission's complaint, filed in federal court in San Francisco, charges that IGDC and Leonard violated Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5, 12b-20, 13a-1, and 13a-13 thereunder. It also charges that Leonard violated Rule 13a-14 under the Exchange Act. The Commission seeks disgorgement of ill-gotten gains, civil money penalties, and injunctive relief against both defendants, and seeks to bar Leonard from participating in an offering of penny stock and from serving as an officer or director of a public company.

In a separate action today, the Commission temporarily suspended trading in the securities of IGDC due to the lack of current and accurate information about the company because it has not filed periodic reports with the Commission since the quarter ended March 31, 2005. The temporary suspension began at 9:30 a.m. EDT and will terminate at 11:59 p.m. EDT on Sept. 26, 2006. Brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Securities Exchange Act of 1934, at the termination of the trading suspension, no quotation may be entered relating to the securities of IGDC unless and until the broker or dealer has strictly complied with all of the provisions of Rule 15c2-11. The Commission also has instituted administrative proceedings to determine whether it should revoke the registration of IGDC's securities based on its failure to make required periodic filings with the Commission.

SEC Complaint in this matter



Modified: 09/13/2006