SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16807 / November 21, 2000
SECURITIES AND EXCHANGE COMMISSION v. JEFFREY L. LEACH, HUBERT A. LEACH AND LMC ASSETS CORP., United States District Court for the Eastern District of Pennsylvania, Civil Action No. 00 CV 5928
SEC SUES JEFFREY LEACH, HUBERT LEACH AND LMC ASSETS CORP. FOR FRAUDULENT MINI TENDER OFFERS
The Securities and Exchange Commission today announced the filing of a lawsuit against Jeffrey L. Leach, his brother Hubert A. Leach, both of whom are residents of Philadelphia, Pennsylvania, and LMC Assets Corp., for fraud in connection with three mini tender offers. The Complaint alleges that Jeffrey and Hubert Leach, president and former vice-president of LMC Assets, made millions of dollars in unlawful profits, and caused investors to suffer millions of dollars in losses, by making fraudulent mini tender offers for shares of Fleming Companies, Inc., Fruit of the Loom, Ltd., and Mattel, Inc. Mini tender offers are offers for less than five percent of a class of securities registered with the Commission. The fraudulent offers were made through two shell corporations that Jeffrey Leach created and controlled - defendant LMC Assets and Carnegie Investment Management, Ltd., a Cayman Islands company that recently filed a petition for bankruptcy.
The Complaint alleges that all three tender offers were fraudulent for several reasons, including:
The Commission's Complaint seeks to permanently enjoin Jeffrey Leach, Hubert Leach and LMC Assets from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-1 thereunder. The Complaint also seeks disgorgement of all ill-gotten gains and losses avoided, prejudgment interest, and civil monetary penalties against the defendants.