U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18722 / May 21, 2004
UNITED STATES V. DONALD A. ENGLISH, ET AL., (USDC/Western District of Oklahoma, Criminal Action No. CR-04-049-F)
SECURITIES AND EXCHANGE COMMISSION V. E-BIZ VENTURES, ET AL., (USDC/Western District of Oklahoma, Civil Action No. CIV-01-223-W)
The Commission announces that on March 16, 2004, a federal grand jury in Oklahoma City, Oklahoma returned a sealed eleven-count indictment against Donald A. English, George M. Anderton, Ronald L. Warner, Aaron A. Carr, Joan M. Eveleno and Sylvia Regina Smith charging the defendants with wire fraud and mail fraud. Specifically, the indictment charges each defendant with five counts of wire fraud and six counts of mail fraud in connection with the operation of an Internet based investment offering called E-Biz Ventures. As of May 18, 2004, all defendants were arrested and arraigned and the seal lifted on the indictment.
The defendants are:
Previously, on January 31, 2001, the Commission sought and obtained a Temporary Restraining Order and the appointment or a receiver in a civil suit charging English with creating and organizing an Internet ponzi scheme through which at least 22,000 investor accounts lost at least $8.8 million. The Commission further alleged that English used investor funds to repay earlier investors and to purchase thousands of dollars of personal items, including electronic equipment, vehicles, appliances and furniture. The Commission also filed suit against Anderton, Warner, Carr, Eveleno and Steven Wayne McAllister naming these individuals as relief defendants to recover investor funds transferred to them as a part of the E-Biz operation.
On July 9, 2001, the Court entered a final judgment by default against English enjoining him from further 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 Court further ordered English to disgorge $284,546 and imposed a $110,000 civil monetary penalty against him for his violations of the securities laws.