SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16908 / February 26, 2001
SECURITIES AND EXCHANGE COMMISSION v. EDWARD GURIN, JOSHUA GURIN AND TRINARC CORPORATION, 01 Civ. 1649 (WK) (S.D.N.Y.)
The Securities and Exchange Commission filed today a Complaint in the United States District Court for the Southern District of New York charging Edward Gurin; his father, Dr. Joshua Gurin; and Edward Gurin's start-up company, Trinarc Corporation, with various schemes to defraud purchasers of unregistered, and in some cases non-existent, securities of private companies. The Commission simultaneously filed an emergency application asking the Court, among other things, to (1) temporarily and preliminarily enjoin defendants Edward Gurin and Trinarc Corporation, who are presently conducting a fraudulent offering of securities, from committing the violations alleged in the Complaint, (2) freeze assets of Edward Gurin and Trinarc Corporation, (3) direct Edward Gurin and Trinarc Corporation to provide accountings, (4) order Edward Gurin to repatriate assets held outside the United States, and (5) permit expedited discovery and prohibit the destruction of documents. The Commission alleges that through the various schemes, the defendants collectively raised over $1.2 million from at least eight investors.
Named in the Complaint are:
Edward Gurin, 26-years old, lives in New York, New York and is the chief executive of defendant Trinarc Corporation. Gurin was associated with The Thermopylae Group, Inc., a now defunct broker-dealer, from December 1999 to June 2000, and served as that firm's president and general securities principal. Gurin was associated with other broker-dealers from September 1997 to April 2000.
Dr. Joshua Gurin, Edward Gurin's father, is a retired physician living in New York. According to several investors, Joshua Gurin touted Edward Gurin as a financial genius who has handled investments for many famous people.
Trinarc Corporation ("Trinarc"). Trinarc was incorporated in Delaware in April 2000 and is not registered with the Commission. Trinarc's principal place of business is 350 Fifth Avenue, Room 6907, New York. In August 2000, Trinarc filed a Form D with the Commission to raise approximately $3 million from the sale of securities purportedly exempt from registration. According to a private placement memorandum for Trinarc securities dated August 9, 2000, Trinarc "creates and sells high-performance, low cost multimedia computers for the home, educational, business and institutional markets." According to Trinarc's Form D, Edward Gurin is a Beneficial Owner, Director and Executive Officer of Trinarc and 61.50%. His parents jointly own 14.14% of Trinarc's authorized stock.
The Complaint alleges that:
As a result of the foregoing, the Commission alleges that Edward Gurin, Joshua Gurin, and Trinarc committed securities fraud in violation of Section 17(a) of the Securities Act of 1933, 15 U.S.C. § 77q(a), Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240.10b-5. In addition to the interim relief sought in the application filed today, the Commission seeks a Final Judgment against the defendants: (i) enjoining them from future violations of the above-cited provisions; (ii) requiring the disgorgement of all of their ill-gotten gains, plus pre-judgment interest; and (iii) assessing civil penalties against them.
The Commission acknowledges the assistance of the United States Attorney's Office for the Southern District of New York and the FBI in this matter. The Commission's action is pending against all parties.