SEC v. Raymond M. Marker, et al., Case No. 1:02-CV1109 (M.D.N.C.)
The Securities and Exchange Commission filed a complaint in the United States District Court for the Middle District of North Carolina on Friday, December 20, 2002 against United States Private Investment Fund ("USPIF"), a purported international fund doing business in North Carolina, and its principal, Raymond M. Marker. The complaint alleges that, beginning as early as March 2002, Marker and USPIF began offering investments in debt instruments, referred to as "Flexi-Time Certificates of Deposit," through the Internet, newspaper advertisements, and personal solicitation. The complaint alleges that Marker and USPIF misrepresented that the Flexi-Time CDs were 100% insured by U.S Treasury obligations. The complaint further alleges that Marker failed to register the offer and sale of these securities with the Commission, and that there was no applicable exemption from registration.
The SEC's complaint charges Marker and USPIF with violations of 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 thereunder. The SEC seeks a temporary restraining order, expedited discovery, preliminary and permanent injunctions against both defendants, as well as an order compelling accountings, disgorgement of ill-gotten gains, along with prejudgment interest and civil penalties. On the same the Commission filed its complaint, Marker and USPIF consented to the entry of an order restraining them violating Sections 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and restraining them from destroying any documents, until the Court can consider the Commission's motion for a temporary restraining order on January 8th, 2003.