U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

First American Reliance, Inc.

On October 6, 1998, the SEC obtained temporary restraining orders and asset freezes against First American Reliance, Inc., Money Managers, Inc., Unified Commercial Capital, Inc., and American Freedom Securities, Inc. The SEC alleged that the defendants fraudulently sold at least $5 million of debentures to about 350 investors, purportedly to finance secured loans to companies. Samuel Yacono, who owned and controlled the defendant companies, misappropriated investor funds to pay for life insurance policies worth about $5.2 million. Yacono subsequently committed suicide. For more information about the SEC's action, you can read Litigation Release No. 15931 (Oct. 6, 1998).

The Court appointed Douglas J. Lustig as Trustee. Mr. Lustig has collected about $4 million in assets and continues to review claims and collect assets. He has made a partial distribution of 20 percent to investors and anticipates making a final distribution sometime in the spring or summer of 2002.

If you want further information about this matter, you can listen to a recorded line, updated monthly, at (585) 325-4627.


Modified: 02/04/2003