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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16715 / September 20, 2000

SECURITIES AND EXCHANGE COMMISSION V. DANIEL MARCUS BOYD, III, Civil Action No. 5:00CV144-V (W.D.N.C. September 20, 2000)

On September 20, 2000, the Securities and Exchange Commission filed a complaint in the United States District Court for the Western District of North Carolina against Daniel Marcus Boyd, III, the former chairman and chief executive officer of Carolina First Bancshares, Inc. In its complaint, the Commission alleges that in late 1997 Boyd began to examine Community Bank & Trust Company, a smaller institution located in Lincolnton, North Carolina, as a possible acquisition target for Carolina First. Simultaneously, Boyd began a program of purchasing shares in Community Bank for himself and members of his family through direct negotiations with Community Bank shareholders. The complaint alleges that Boyd omitted to tell the shareholders that he was the chairman and CEO of Carolina First and omitted to tell them that he was discussing a possible acquisition of Community Bank by Carolina First with officers and directors of Community Bank.

The complaint alleges that between November 18, 1997, and March 2, 1998, Boyd purchased over 19,000 Community Bank shares for himself and members of his family. Under the conversion ratio used to convert Community Bank shares into those of Carolina First when the acquisition was consummated in December 1998, Boyd stood to gain over $200,000 for himself and members of his family from these stock purchases. The complaint requests that the court enjoin Boyd from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and that the Court order Boyd to pay a civil money penalty.

http://www.sec.gov/litigation/litreleases/lr16715.htm


Modified:09/20/2000