U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17460 / April 5, 2002
SECURITIES AND EXCHANGE COMMISSION v. SAMER EL BIZRI, CONRAD P. SEGHERS, JAMES DICKEY, INTEGRAL HEDGING LP, INTEGRAL ARBITRAGE LP, AND INTEGRAL EQUITY LP (Case No. CV 02-01251 MMM (FMOx))
U.S. DISTRICT COURT ISSUES ORDER REQUIRING COMPLIANCE IN SEC SUBPOENA ENFORCEMENT ACTION
The Securities and Exchange Commission announced that the U.S. District Court for the Central District of California granted its application for enforcement of investigative subpoenas against Samer El Bizri, Conrad P. Seghers, James Dickey, and three funds, Integral Hedging LP, Integral Arbitrage LP, and Integral Equity LP. In addition, the Court denied certain respondents' motions for a protective order to quash a Commission investigative subpoena, and for discovery from the Commission. The Court ordered Bizri, Seghers, and Dickey to provide sworn testimony and produce documents on or before April 25, 2002, and the funds to produce documents on or before April 25, 2002. In finding that the subpoenas were enforceable as written, the Court held that Bizri, Seghers, Dickey, and the funds failed to demonstrate that the subpoenas were issued in bad faith or overbroad, and failed to show any circumstances warranted delaying the Commission's investigation.
The Commission filed its application for enforcement of its subpoenas on February 8, 2002. The investigative subpoenas sought documents and testimony regarding, among other things, whether Bizri, Seghers, and Dickey offered and sold unregistered securities and made materially false and misleading statements or omitted to state material facts concerning the use of investor proceeds and the funds' rates of return.