U. S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19339 / August 18, 2005
SEC v. Jeffrey L. Gibson and Investment Property Management, LLC, Civil Action No. 1:05-CV-163-RLV (NDGA August 5, 2005)
The Securities and Exchange Commission (“Commission”) announced that on August 10, 2005, the Honorable Robert L. Vining, United States District Judge for the Northern District of Georgia, entered an order of preliminary injunction and other relief as to defendants Jeffrey L. Gibson (“Gibson”) and Investment Property Management, LLP (“IPM”). The order restrained and enjoined Gibson and IPM from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The order further restrained and enjoined Gibson from future violations or aiding and abetting violations of Section 206 of the Investment Advisers Act of 1940.
Gibson and IPM consented to the entry of this order without admitting or denying the allegations set forth in the Commission’s complaint, filed on August 5, 2005. The complaint alleged that, from at least December 2002 through the present, Gibson misappropriated for his personal use approximately $450,000 from investors in American Car Wash Fund, LP (“ACW”), a limited partnership. IPM served as ACW’s general manager. Between December 2002 and April 2003, Gibson, through IPM, sold approximately 43 limited partnership interests in ACW, raising approximately $875,000. Approximately 38 of the limited partners were also clients of his advisory business. Almost as soon as he began selling interests, Gibson started writing checks, payable to cash, on ACW’s bank accounts and misappropriating the funds from those checks for his personal use. In order to conceal the misappropriation of funds, Gibson and IPM regularly sent letters to ACW investors describing annualized rates of return, dividends and purchases of various properties. None of those letters disclosed the ongoing misuse of proceeds by Gibson and IPM.
See also: L.R. 19331 (August 9, 2005).