Michael J. Christie d/b/a MJC Financial Services

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16724 / September 26, 2000

SEC v. MICHAEL J. CHRISTIE D/B/A MJC FINANCIAL SERVICES, U.S. District Court for the Northern District of Ohio, Civil Action No. 99 CV 7628 (N.D. Ohio November 2, 2000)

The Securities and Exchange Commission today announced that on November 2, 1999, the Honorable David A. Katz, United States District Judge for the Northern District of Ohio, Western Division, in the case of S.E.C. v. Michael J. Christie d/b/a MJC Financial Services, (99 CV 7628), entered an Order of Preliminary Injunction against Michael J. Christie of Perrysburg, Ohio. Previously, on October 7, 1999, Judge Katz entered a Temporary Restraining Order against Christie.

The Commission's Complaint alleges that from December 1993 through October 1994, Christie misappropriated at least $650,000 given to him by various customers for investment. In furtherance of the scheme, the Complaint alleges that Christie held himself out as a legitimate broker and misrepresented to his customers that he would invest their money in securities when, in fact, Christie deposited their money in his own bank accounts and used it for his own personal expenses. In addition, the Complaint alleges that Christie forged endorsements on checks issued from actual securities accounts of some of his customers and used the proceeds for his own purposes. To lead his clients to believe their investments were legitimate, the Complaint alleges Christie paid purported returns to certain investors on non-existent investments and "refunds" to certain complaining investors from investor funds. In addition, the Complaint alleges Christie generated and distributed false confirmations and account statements in order to conceal the misappropriation.

The Order of Preliminary Injunction preliminarily enjoins Christie from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b), 15(a) and 15(c)(1) of the Exchange Act of 1934 and Rules 10b-5 and 15c1-2 promulgated thereunder. The Order, among other things, also imposes a freeze on Christie's assets and requires Christie to provide an accounting of his assets, liabilities and investor funds to the Commission.