Litigation Release No. 17318 / January 16, 2002
SECURITIES AND EXCHANGE COMMISSION v. PHILIP J. YODER, Civil Action No. 01-C-9426 (N.D. Ill.)
CIVIL CONTEMPT HEARING SCHEDULED AGAINST PHILIP J. YODER FOR FAILURE TO COMPLY WITH SEC SUBPOENAS
The Securities and Exchange Commission (Commission) announced that on January 8, 2002, the Honorable Suzanne B. Conlon of the United States District Court for the Northern District of Illinois ordered Philip J. Yoder (Yoder) to appear and show cause why he should not be held in civil contempt for failing to produce documents and give testimony pursuant to the court's December 13, 2001 order. The December 13, 2001 order arises out of a subpoena enforcement action the Commission filed against Yoder, a resident of Goshen, Indiana, for his failure to comply with two Commission investigative subpoenas requiring the production of documents and testimony. Pursuant to the court's order and agreement of the parties, Yoder was required to produce documents by December 19, 2001 and appear for testimony on December 27, 2001. Yoder failed, however, to appear for testimony or produce documents pursuant to the order. Consequently, the Commission filed a motion for entry of an order to show cause why Yoder should not be held in civil contempt for failing to obey the court order.
The subpoenas were issued in a non-public investigation into whether Yoder and others participated in one or more fraudulent investment schemes. According to papers filed with the court, the Commission is investigating whether Yoder, through an entity called All the Way to the Top (ATWTTT), may have fraudulently raised over $700,000 from approximately 160 investors by misrepresenting the nature and risk of the investment. In addition, the court papers alleged that Yoder may be involved in a prime bank scheme by selling mid-term notes trading on overseas markets which allegedly generate huge returns for the investor. These instruments, however, do not exist. The Commission's investigation will seek to determine whether Yoder may have fraudulently raised over $1.2 million and made over $18 million in connection with such trades.
The judge has set the show cause hearing for January 29, 2002.
For more information about prime bank frauds, visit the SEC's website at http://www.sec.gov/divisions/enforce/primebank.shtml.