UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16191 \ June 18, 1999

IN RE: BETTY ANN RUBIN, No. SV-98-13271-EC SECURITIES AND EXCHANGE COMMISSION v. BETTY ANN RUBIN et al., Adv. No. 98-01427-EC (C.D. Cal.).

SEC PREVENTS BROKERAGE FIRM PRESIDENT BETTY ANN RUBIN FROM DISCHARGING JUDGMENT IN BANKRUPTCY

The SEC announces that on June 1, 1999, the U.S. Bankruptcy Court entered a judgment of nondischargeability against brokerage firm president Betty Ann Rubin. The judgment prevents Rubin, president of Lazar Frederick & Company, from discharging the $346,410.92 judgment obtained against her in a SEC enforcement action.

In the enforcement action, the SEC showed that Rubin, a Woodland Hills resident, fraudulently offered securities in the form of 29 oil and gas limited partnerships from May 1993 to December 19, 1995 and participated in a scheme that paid investor returns with other investors' money. This Ponzi-like scheme raised $35,534,000 from investors, many of whom are elderly. Rubin, through Lazar, also accepted $2.9 million in kickbacks from the general partner, KS Resources, for fraudulently selling these oil and gas limited partnership interests.

On May 29, 1999, Rubin was named in a 40-count indictment by a federal grand jury in connection with this fraudulent conduct. The indictment alleges that she and three others committed securities fraud, mail fraud, and money laundering and participated in a conspiracy to commit money laundering.

See Litigation Release Nos. LR-14766, 14866, 15331, 15525, 15567, 15574, and 15668.