U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20763 / October 1, 2008
Securities and Exchange Commission v. International Fiduciary Corp., S.A., et al., U.S. District Court for Eastern District of Virginia (Civil Action No. 1:06CV1354)
Final Judgments Entered Against Relief Defendants in Over $40 Million Prime Bank Fraud
The Securities and Exchange Commission ("Commission") announced today that the Honorable Gerald Bruce Lee, United States District Judge for the Eastern District of Virginia, has entered Final Judgments as to Relief Defendants Terry Martin (and associated entities CD2E, Inc., M&M Technologies, Inc., and Winchell Corporation) and Robert Lowrey (and associated entity SZE Coast Operating Corporation), ordering them to disgorge, along with prejudgment interest, funds they hold or control that represent the fruits of violations by others as alleged in the Commission's First Amended Complaint. The relief defendants were not charged with violations of the federal securities laws. The judgment against Martin was entered on September 17, 2008 and the judgment against Lowrey was entered on August 13, 2008. The entry of these judgments closes the litigation involving the Commission's December 2006 emergency action against International Fiduciary Corporation, S.A. ("IFC") and its principals, in which the Commission alleged that the defendants raised at least $40 million from at least 140 investors in a ponzi scheme.
On August 13, 2008, the Court entered the judgment against Lowrey after entering summary judgment against him and his associated entities by default. The Court ordered Lowrey to pay disgorgement of $702,210, plus prejudgment interest of $91,313.23.
On September 17, 2008, Martin consented to the entry of the judgment against him without admitting or denying the allegations of the Commission's First Amended Complaint as part of a settlement with the Commission. The Court ordered disgorgement against Martin in the amount of $550,000, plus prejudgment interest of $83,967.19.
The judgments against Martin and Lowrey and the other associated entities require that the funds ordered to be disgorged by them, as well as the prejudgment interest thereon, are to be paid to Roy M. Terry, Jr., the Court-Appointed Receiver for IFC, so that he may distribute all those funds — and all other funds paid by Defendants and Relief Defendants in this case — pursuant to the Court-approved Plan of Distribution.
The Commission wishes to acknowledge the continuing assistance of the British Columbia Securities Commission. For further information, see Litigation Release Nos. 19934 (December 5, 2006); 19976 (January 23, 2007); 20087 (April 24, 2007), 20158 (June 20, 2007); and 20208 (July 25, 2007).