U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17515 / May 14, 2002

MONEY MANAGER ALFRED M. LEMCKE INDICTED IN FRAUDULENT SCHEME TO DEFRAUD CLIENTS

Securities and Exchange Commission v. Alfred M. Lemcke, Individually, and d/b/a Lemcke & Associates (United States District Court for the District of Rhode Island, Civil Action No. 01547-L)

The Commission announced today that, on May 1, 2001, Alfred M. Lemcke was indicted by a grand jury impaneled by the United States Attorney's Office for the District of Massachusetts on 10 criminal charges, including one count of criminal fraud under the Investment Advisers Act of 1940 and nine counts of wire fraud. The indictment alleges that Lemcke represented that he was in the business of providing investment advice, financial management and related financial services to individuals. The indictment further alleges that Lemcke induced his victims to give him money by falsely representing that he would invest the money in securities appropriate to their financial needs and objectives through Individual Investment Portfolio Design Company, which he described as a Chicago-based financial services company. According to the indictment, Lemcke instead spent nearly all of the money he raised for his own purposes while periodically providing his victims with false account statements designed to lull them into believing that their investments were doing well.

In an earlier related proceeding, the Commission obtained a temporary restraining order and asset freeze against Lemcke in Rhode Island federal district court on November 16, 2001, based on its prima facie showing that Lemcke violated the antifraud provisions of the federal securities laws when he engaged in the conduct described above. On December 6, 2001, the Honorable Ronald R. Lagueux, United States District Judge for the District of Rhode Island, granted the Commission's request for a preliminary injunction and continued the asset freeze against Lemcke.

For further information, please see Litigation Release No. 17237 (November 16, 2001).


http://www.sec.gov/litigation/litreleases/lr17515.htm

Modified: 05/15/2002