U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17087 / August 2, 2001
SECURITIES AND EXCHANGE COMMISSION V. KS RESOURCES, WESTSTAR EXPLORATION, INC., LAZAR FREDERICK & COMPANY, JOHN K. JUDD, JR., MARK D. SEIGEL, ALEXANDER L. KAHAN, BETTY A. RUBIN, GUARDIAN INDUSTRIES, INC., PATHFINDER MINERALS GROUP, INC., ALEX KAHAN ENTERPRISES, INC., MID-WEST PRODUCTION, INC., AND JAMIE B. SEIGEL, CV-95-8608 WDK (AJWx)(C.D. Cal.)
UNITED STATES V. MARK D. SEIGEL, ALEXANDER L. KAHAN, JOHN K. JUDD, JR., AND BETTY ANN RUBIN, CR-99-507-ER (C.D. Cal.)
BROKER-DEALER PRESIDENT SENTENCED TO EIGHT YEARS FOR SELLING FRAUDULENT SECURITIES
The United States Attorney for the Central District of California announced that on July 30, the Honorable Edward Rafeedie, United States District Judge, sentenced Betty Ann Rubin to 97 months for her role in an oil and gas limited partnership Ponzi scheme that defrauded over 1,000 primarily elderly investors. Rubin is the final criminal defendant to be sentenced in a massive Ponzi scheme case that arose out of the Commission's 1995 enforcement action.
Previously, in December 1995, the SEC brought an emergency enforcement action against Rubin, John K. Judd, Jr., Mark D. Seigel, and Alexander Lazar Kahan, all of Los Angeles County, alleging that they conducted a nationwide offering of fraudulent securities issued by KS Resources. Rubin's Beverly Hills-based broker-dealer, Lazar Frederick & Company, sold these securities in the form of 29 oil and gas limited partnerships from May 1993 to December 19, 1995. This Ponzi scheme raised $42 million and Rubin received $2.9 million in kickbacks. Rubin, Judd, Seigel and Kahan consented to permanent injunctions and to pay disgorgement without admitting or denying the Commission's allegations.
Rubin, Judd, Seigel and Kahan were convicted for their roles in this Ponzi scheme. Previously, the Court sentenced Judd to 97 months and Kahan to 46 months for their roles in the Ponzi scheme. Seigel committed suicide before sentencing.