U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21109 / June 29, 2009
Securities and Exchange Commission v. Finbar Securities Corp., et al., United States District Court for the Central District of California, Case No. CV 09-2325 ODW (Apr. 3, 2009)
JUDGMENT OF PERMANENT INJUNCTION ENTERED AGAINST UNREGISTERED BROKER-DEALER AND DEFAULTED DEFENDANT INDICTED BY A FEDERAL GRAND JURY
The Securities and Exchange Commission announced that a judgment of permanent injunction has been entered against an unregistered broker-dealer, Finbar Securities Corp., a suspended California corporation formerly based in West Covina, California, and the default of Finbar's former president, Robert Tringham, 63, formerly of Diamond Bar, California, has been entered.
On June 12, 2009, the United States District Court in Los Angeles entered a judgment of permanent injunction and other relief against Finbar pursuant to the consent of the Court-appointed permanent receiver, Robb Evans & Associates LLC. The judgment enjoins Finbar from violating the antifraud and the broker-dealer registration provisions of the federal securities laws, and specifies that funds and assets of the receivership estate, if any, will be distributed to investors less court-approved fees and expenses pursuant to a plan of distribution that may be submitted by the receiver. On May 21, 2009, the Court clerk entered Tringham's default for failing to respond to the Commission's complaint.
The Commission's complaint, filed on April 3, alleges that Tringham and Finbar fraudulently raised at least $6.4 million from investors in the U.S. and abroad, and falsely represented that Finbar was "a licensed Securities Dealer" and engaged in other fraudulent conduct. The complaint alleges Tringham told investors Finbar sold debt instruments and high yield risk-free investment opportunities, and that Finbar had not been registered with the Commission and that Tringham had not been associated with any registered broker or dealer. The Commission obtained a temporary restraining order and other emergency relief on April 3, and a preliminary injunction and an order appointing a permanent receiver on April 13.
In addition to the relief already obtained, the Commission seeks a permanent injunction, disgorgement, and civil penalties against Tringham, and disgorgement and civil penalties against Finbar. Administration of the receivership estate will continue.
Separately, Tringham was indicted by a federal grand jury in Los Angeles on May 20, 2009 for conduct unrelated to Finbar in United States of America v. Robert Tringham, United States District Court for the Central District of California, Case No. CR0900490.