UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17675 / August 9, 2002
COURT ORDERS ASSET FREEZE AND OTHER RELIEF CONCERNING $1.2 MILLION FRAUDULENT UNREGISTERED OFFERING BY ARDIAN FINANCE GROUP AND OTHERS
SEC v. Ardian Finance Group, et al., No. 02 Civ. 4366 (E.D.N.Y.) (DGT)
The Securities and Exchange Commission announced that on August 6 and 7, 2002, United States District Judge David G. Trager of the U.S. District Court for the Eastern District of New York entered orders preliminary enjoining Ardian Finance Group, its president, Vladislav Tartakovsky, and Michael Green, a salesman who sold Ardian securities to investors, from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The Court also enjoined Green from violating Section 15(a)(1) of the Exchange Act. Additionally, the Court entered an order freezing Ardian's assets. Ardian, Tartakovsky and Green consented to the entry of these orders.
The Court also entered orders (i) temporarily restraining Michael Yeninas, another salesman who sold Ardian securities to investors, from violating the registration and antifraud provisions of the securities laws, pending a hearing on the Commission's application for a preliminary injunction, and (ii) requiring relief defendant JBS Investments, Inc. to provide an immediate accounting of all funds it received from Ardian.
The orders arise from the Commission's filing of an emergency application on August 6, 2002 to stop Ardian's fraudulent unregistered offering. Tartakovsky orchestrated this fraudulent offering, and he retained Yeninas and Green to solicit investors to purchase Ardian securities. Ardian, Tartakovsky, Yeninas and Green all made material misrepresentations to investors and in Ardian's private offering memoranda to induce them to purchase Ardian securities.
For additional information on the Commission's complaint, see LR-17663. [SEC v. Ardian Finance Group, et al., 02 Civ. 4366 (E.D.N.Y.) (DRH)] .