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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION
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Litigation Release No. 15722 / April 28, 1998

United States of America vs. Roy Matlock and Alan Root, (Criminal Case #98 CR 172, N.D. Ill.)

The Securities and Exchange Commission and the Acting United States Attorney for the Northern District of Illinois announced that on March 18, 1998, Roy Matlock (Matlock) was indicted on seven counts of mail, wire and securities fraud and conspiring to commit those crimes. Matlock, a former registered representative living in Kingsport, Tennessee, is accused of defrauding various investors out of over $3.6 million by, among other things, guaranteeing them high rates of return in connection with the offer and sale of so-called Prime Bank instruments. In addition, certain investors received payment of "returns" out of the money invested by later investors.

On April 8, 1998, a superseding indictment was returned naming Alan Root (Root), Matlock’s business partner, for his role in the fraud. Root, formerly of Orland Park, Illinois, is expected to plead guilty on May 6th.

http://www.sec.gov/litigation/litreleases/lr15722.htm


Modified:04/28/1998