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SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17392 / March 5, 2002

SECURITIES AND EXCHANGE COMMISSION V. DANIEL MARCUS BOYD, III, Civil Action No. 5:00CV144-V (W.D.N.C. February 28, 2002)

The Securities and Exchange Commission announced that on February 28, 2002, the Honorable Richard L. Voorhees of the United States District Court for the Western District of North Carolina entered a permanent injunction against Daniel Marcus Boyd, III, the former chairman and chief executive officer of Carolina First Bancshares, Inc., enjoining Boyd from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court's order also directed Boyd to pay a civil penalty of $147,725.02. Boyd consented to entry of the permanent injunction and the imposition of civil penalties without admitting or denying the allegations in the Commission's complaint.

The complaint, filed on September 20, 2000, alleged that in November 1997 Boyd began to examine Community Bank & Trust Company as a possible acquisition target for Carolina First. Simultaneously, Boyd began a program of purchasing shares in Community Bank for himself and members of his family through direct negotiations with Community Bank shareholders. The complaint alleged that Boyd omitted to tell the shareholders that he was the chairman and CEO of Carolina First and omitted to tell them that he was discussing a possible acquisition of Community Bank by Carolina First with officers and directors of Community Bank. Previously, Boyd made a rescission offer to the Community Bank shareholders from whom he had purchased shares and, in April 1999, pled guilty to two misdemeanor counts of North Carolina state securities fraud.

See also: Lit. Release No. 16715 (September 20, 2000)


http://www.sec.gov/litigation/litreleases/lr17392.htm

Modified: 03/06/2002