U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21556 / June 14, 2010
SEC v. United American Ventures, LLC, Philip Lee David Jack Thomas, Eric J. Hollowell, Matthew A. Dies, Integra Investment Group, LLC, and Anthony J. Oliva, United States District Court for the District of New Mexico, Civil Action No. 1:10-cv-00568.
SEC CHARGES TWO ENTITIES AND FOUR INDIVIDUALS IN CONNECTION WITH THE OFFER AND SALE OF $10 MILLION OF FRAUDULENT BONDS
The Securities and Exchange Commission today filed charges against United American Ventures, LLC ("UAV"), Philip Lee David Jack Thomas, Eric J. Hollowell, Matthew A. Dies, Integra Investment Group, LLC ("Integra") and Anthony J. Oliva in connection with a fraudulent scheme involving the offer and sale of purported "convertible bonds" issued by UAV. The SEC's complaint, filed in federal court in Albuquerque, alleges that between July 2007 and November 2009, UAV, based in Irvine, California, and its principals, Thomas and Hollowell, along with its investor relations associate, Dies, sold approximately $10 million in bonds to approximately 100 individual investors in various states. Integra, formerly of Albuquerque, New Mexico, which was owned and controlled by Oliva, used a website and held investment seminars to solicit investors for UAV.
The SEC's complaint alleges that the defendants misrepresented and concealed numerous material facts in communications with investors. They assured investors, for example, that UAV had a strong track record of profiting from medical-related investments and that investors would earn a guaranteed 25 percent annual return on UAV's bonds. In reality, UAV had no such record or experience, and never earned a return from any investment. Instead, UAV used nearly all of the money it raised from investors for purposes other than investments in medical ventures, such as paying exorbitant salaries and benefits to Thomas and Hollowell, paying referral fees to Integra and Oliva, and making Ponzi-type interest payments to investors. Further, the defendants misrepresented Thomas' venture capital experience and educational background, and failed to inform investors that Thomas was previously barred by a California court from being involved in any securities offering.
Without admitting or denying the allegations in the Commission's complaint, the defendants each consented to final judgments permanently enjoining them from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. Thomas, Hollowell, Dies, and Oliva also consented to be permanently enjoined from violations of Section 15(a)(1) of the Exchange Act. The Commission's complaint also seeks disgorgement, prejudgment interest, and civil penalties from all of the defendants, as well as another entity controlled by Thomas, All American Capital Corporation, which will be determined by the court.
See Also: SEC Complaint