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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18683 / April 27, 2004

Securities and Exchange Commission v. Wealth International Network, Andre Brady, et al., United States District Court for the Northern District of Georgia, Civil Action No. 1:95-CV-1722-CAM

The Securities and Exchange Commission announced today that the Honorable Charles A. Moye, Jr., United States District Judge for the Northern District of Georgia, entered an Order To Show Cause why defendant Andre Brady (Brady) should not be held in civil contempt for his violation of the Court's March 19, 1998 order requiring him to pay disgorgement.

The Commission's Complaint, filed on July 5, 1995, alleged that Wealth International Network (WIN) was a "pyramid" or "Ponzi" scheme and that WIN, Discovery Financial Investments (DFI) and Brady attracted investments in DFI with false claims that such investments earned from 8 to 20 percent per month, with minimal risk of loss of principal. DFI claimed to be investing in "triple AAA rated" securities backed by gold bullion, gold and numismatic coins and foreign currencies.

On March 19, 1998, a final judgment of permanent injunction was entered against Brady, enjoining him from further violations of Sections 5 and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 203, 206(2) and 206(4) of the Investment Advisers Act of 1940. Brady consented to the entry of the judgment without admitting or denying the allegations of the Commission's Complaint. The Court also ordered Brady to pay disgorgement in the amount of $4,031,110.65 plus postjudgment interest. The Commission's application for an order to show cause alleged that Brady had failed to pay the disgorgement required by the final judgment.


http://www.sec.gov/litigation/litreleases/lr18683.htm


Modified: 04/26/2004