U.S. Securities and Exchange Commission
Litigation Release No. 18153 / May 21, 2003
SEC v. BIJ Financial Services d/b/a Molla Investments, New Era Enterprises Company and Brian K. Miles, Civil Action No. 01-Z-2322 (D. Colo.)
On May 16, 2003, United States District Judge Zita L. Weinshienk entered a final judgment against BIJ Financial Services d/b/a Molla Investments, New Era Enterprises Co. and Brian K. Miles, all of Denver. The final judgment prohibits violations of the antifraud provisions of the federal securities laws set forth in Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Defendant Miles was also ordered to pay disgorgement of $44,800, prejudgment interest of $5,664, and civil penalties of $17,210.
The Commission's complaint, filed in December 2001, alleged that defendants fraudulently raised at least $200,000 from investors through the sales of units in a "Venture Capital Program." The Commission further alleged that the defendants falsely promised investors returns of 20% monthly or 40% quarterly with no risk to their principal. The returns were to be generated through defendant Miles' trading in S&P 500 futures. Additionally, the complaint alleged that defendants stopped paying investors their promised returns, claiming that they could no longer pay because the Commission had frozen their funds. In fact, the Commission had not brought any type of enforcement action against the defendants before this action and had not previously obtained a freeze of the defendants' assets.