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

Kenneth Roy Weare, also known as Roy Weaver, J&K Global Marketing Corporation, and AAA-Auction.com, Inc.

In April 2001, the SEC obtained a temporary restraining order against J&K Global Marketing Corp. and its president, Kenneth R. Weare, who was also known as Roy Weaver, in connection with an alleged Ponzi scheme.  According to the complaint, in 1999 and 2000, the defendants offered memberships in an investment program for a fee of $375.  The SEC alleged that the defendants promised investors their funds would be invested in offshore high-yield ventures and, after six months, investors would receive $375 per month for six months.  In actuality, the SEC claimed that no investment program existed and Weare used investor money for his personal expenses and to pay fictitious earnings to earlier investors.

The SEC also alleged that Weare and AAA-Auction.com engaged in a fraudulent scheme to offer and sell securities in the form of merchandise “Purchase-Resale Agreements” to raise funds to operate a live auction on the company’s Internet website.  Investors were promised returns of 50% to 80% per year.  Rather than investing the money in the business venture, the SEC claimed that Weare used the money to pay 30 to 40% commissions to salesmen and the remainder to pay business and personal expenses.

The Court ordered Weare and his companies to pay over $6.9 million in disgorgement.  In October 2002, the SEC obtained a contempt order against Weare when he failed to make any payments to satisfy the judgment.  Subsequently, Weare was arrested and held in custody until November 2004 for violation of the contempt order.  In a related criminal action, Weare pled guilty and was sentenced to three years in prison in August 2005. 

The SEC has successfully pursued legal actions against banks in Grenada and Luxembourg to recover investors’ funds.  The SEC has recovered over $800,000 from Grenada and over $2.9 million from Luxembourg. 

For more information about the SEC’s action, you can read Litigation Release Nos. 16961 (Apr. 13, 2001), 17804 (Oct. 24, 2002); and 17811 (Oct. 29, 2002).

On October 26, 2005, the Court appointed a Receiver, Patten, MacPhee & Associates, Inc., to administer the money recovered overseas, and to create a claims process for investors to submit claims for their losses in either J&K Global Marketing or AAA-Auction.

The claims process will start in approximately thirty days or late November 2006. Leslie J. Hughes, the SEC’s attorney, is sending an email to investors requesting that they participate in the claims process by registering on the Receiver’s website at http://www.jkglobalreceivership.com. You can also find more information at this website on the Receivership and the process the Receiver will be using to collect information. If you do not register within the time period set by the Court in the claims process, you will not be able to participate in the distribution of funds that the SEC has recovered.


Modified: 10/23/2006