U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17222 / November 5, 2001
SECURITIES AND EXCHANGE COMMISSION V. CONCORD CAPITAL ENTERPRISE, DBA CONCORD CAPITAL INC. AND CONCORD CAPITAL ENTERPRISES INC., SCOTT YOSHIZUMI, ANN TA, AND DIONISIA PAPPAS Civil Action No. SA CV 00-1131 AHS (EEX) (C.D. Cal.)
The Securities and Exchange Commission ("Commission") today announced that on October 29, 2001, a Final Judgment was entered against defendant Scott Yoshizumi ("Yoshizumi") by default. Yoshizumi was permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder, the antifraud provisions of the federal securities laws. Yoshizumi was also ordered to disgorge $15,068,300 in ill-gotten gains, to pay prejudgment interest thereon in the amount of $834,457.68, and to pay a civil penalty of $110,000.
The judgment obtained against Yoshizumi concludes the Commission's litigation in this matter. The Court previously allowed Court-appointed Receiver James Donell to consent to judgment on behalf of Concord Capital Enterprise ("Concord"). On May 22, 2001, a final judgment was entered against Concord permanently enjoining it from violating the antifraud provisions of the federal securities laws. On May 22, 2001, the Court also ordered Judgments of Disgorgement of Certain Assets against relief defendants Ann Ta ("Ta") and Dionisia Pappas ("Pappas"). Ta was ordered to disgorge a BMW automobile and a Fullerton home purchased for $1.3 million and Pappas was ordered to disgorge two Mercedes Benz automobiles.
The Commission's Complaint alleges that from November 1999 to November 2000, Concord and Yoshizumi engaged in a fraudulent scheme involving an investment in a Bank Debenture Program. The Complaint further alleges that the offering documents distributed by the defendants and their agents represented that client funds would be used solely for participating in the Bank Debenture Program with the "top 200 world banks" and that investors will receive two or four percent profit per month. Investors were further told that their funds would be placed in a "special account" until sufficient funds were accumulated to enter into the program. In fact, the Bank Debenture Program was a fraudulent investment scheme and investor funds were commingled into several Concord accounts and immediately withdrawn for various business expenses and personal uses including the purchase of a $1.3 million Fullerton home for Ta and the Mercedes Benz automobiles for Pappas.