U.S. Securities and Exchange Commission
Litigation Release No. 18167 / June 3, 2003
Securities and Exchange Commission v. Dunyasha M. Yetts, et al., No. C2-01-1263 (S.D. Ohio)
SEC Obtains Final Judgment Against Dunyasha M. Yetts, Worldwide Financial Group, Inc. and Relief Defendant World Wide Sports Group, Inc.
On May 20, 2003, the Honorable Gregory L. Frost, United States District Judge for the Southern District of Ohio, entered a final judgment against Dunyasha M. Yetts and two entities that he controls, Worldwide Financial Group, Inc. and World Wide Sports Group, Inc. The judgment enjoins Yetts and Worldwide Financial Group from violating the anti-fraud and broker-dealer registration provisions of the federal securities laws. The judgment also orders Yetts, Worldwide Financial Group Inc. and Worldwide Sports Group, Inc, a relief defendant, jointly and severally to disgorge $2,980,627 (including prejudgment interest). Finally, the judgment orders Yetts to pay a civil penalty of $110,000.
According to the Commission's complaint:
Yetts defrauded at least 14 customers of approximately $1.8 million in investment schemes that continued from 1998 through early 2001. Conducting business individually and later through Worldwide Financial, Yetts fraudulently induced customers to entrust him with funds by falsely representing that he would invest their money in the stock market and other securities. Instead of investing those funds, Yetts misappropriated or diverted the money for other purposes, including paying personal and business expenses, making payments to earlier investors, and buying and selling securities for his own account or for other accounts he controlled, including accounts maintained in the name of his sports agency business, World Wide Sports. In an attempt to conceal his misconduct, Yetts provided customers with materially false and misleading periodic account statements which indicated that Worldwide Financial had bought and sold specific securities for their account. When various customers demanded the return of their funds, Yetts falsely claimed that he had transferred their funds (unbeknownst to them) to a supposed money management firm in California, and that he was unable to retrieve their money. Through his fraudulent conduct, Yetts exploited inexperienced and financially unsophisticated customers who relied on Yetts's purported superior knowledge and expertise.
The district court's order provides the Commission with: (1) injunctive relief as to Yetts and Worldwide Financial; (2) monetary judgments against Yetts, Worldwide Financial and World Wide Sports, to be paid jointly and severally, in the total amount of $2,980,627 (including disgorgement and prejudgment interest); and (3) a civil penalty of $110,000 against Yetts. On his own behalf and on behalf of Worldwide Financial and World Wide Sports, Yetts consented to the entry of the judgment without admitting or denying the allegations contained in the Commission's complaint. Yetts further agreed to an order in his parallel bankruptcy proceeding that his $2,980,627 debt to the Commission would not be dischargeable. Finally, without admitting or denying the Commission's allegations, Yetts also consented to the issuance of a Commission Order permanently barring him from association with a broker-dealer pursuant to Section 15(b)(6) of the Exchange Act.
For further information, see Litigation Release No. 17286 (December 20, 2001).