U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19249 / June 6, 2005
Securities and Exchange Commission v. Philip J. Yoder Individually and d/b/a All The Way to the Top, No. 3:03-CV-0418AF (N.D. Ind.) (Hon. Allen Sharp).
PHILIP J. YODER ORDERED TO PAY DISGORGEMENT OF ILL-GOTTEN GAINS AND CIVIL PENALTIES TOTALING $504,991.70 FOR DEFRAUDING 85 INVESTORS
The Securities and Exchange Commission announced that on May 12, 2005, Judge Sharp of the United States District Court for the Northern District of Indiana entered final judgment against Philip J. Yoder, permanently enjoining him from future violations of the registration and antifraud provisions of the federal securities laws, ordering disgorgement and pre-judgment interest of $394,991.70, and ordering a civil penalty of $110,000. The judgment arises out of Yoder's operation of two investment schemes that defrauded 85 investors out of more than $1.6 million. Yoder, age 27, currently resides in Sarasota, Florida, but lived in Goshen, Indiana during the time he engaged in his fraudulent conduct.
From December 2000 to February 2001, Yoder raised approximately $637,603 from investors in All the Way to the Top, a so-called loan program in which Yoder promised guaranteed returns of 40 to 50 percent per month. Yoder made various misrepresentations about the use of investor funds and told investors that their investment was safe and risk-free. Yoder used the money inconsistently with his representations to shareholders, and used a significant portion of the funds he raised for personal expenses, including an SUV, a sports car, and a motorcycle. Yoder also used the funds to pay for trips to Switzerland and the Bahamas. The investors received neither the interest that was promised them, nor were they able to recover their principal investment. In January 2001, Yoder also raised over $1 million for a "prime bank" trading program. Yoder told investors that the program was safe and risk-free, and that they would earn 100% return per week for eleven months through the trading of "medium term" notes. In reality, such trading programs do not exist. The investors never received any returns, and most investors lost their principal.
Yoder was enjoined from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Additional information regarding the Commission's lawsuit can be found at Litigation Release No. 18184, June 10, 2003. The Commission wishes to thank the Portland, Oregon Field Office of the Federal Bureau of Investigation, the British Columbia Securities Commission, the Royal Canadian Mounted Police, and the Hong Kong Police Department for their assistance in this matter.
For tips on how to avoid prime bank fraud, visit http://www.sec.gov/divisions/enforce/primebank.shtml. For more information on Internet fraud, visit http://www.sec.gov/divisions/enforce/internetenforce.htm. To report suspicious activity involving possible Internet fraud, visit http://www.sec.gov/complaint.shtml.