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SEC v. George B. Franz, III, et al. Admin. Proc. File No. 3-15526

Oct. 7, 2022

On April 30, 2014, the Commission instituted and simultaneously settled proceedings (the “Order”) against George B. Franz, III and Ruby Corporation (collectively, the “Respondents”). The Commission found that, from 2007 through 2011, the Respondents violated federal securities laws by theft of advisory client funds and a cover-up by the perpetrator’s father and supervisor.  The Commission ordered, and the Respondents have paid a total of $425,000.00 in disgorgement and prejudgment interest (together, “the Distribution Fund”), and $675,000.00 in civil money penalties to the U.S. Treasury.

The Order further provides that within 90 days of receipt of the monies ordered, the Commission will distribute the Distribution Fund to Clients 1 through 43, previously identified by Commission staff, who suffered a net harm as a result of the Respondents’ misconduct described in the Order.  The amount of each of these payments represents the dollar amount of each client’s net loss plus reasonable interest as calculated by the Commission staff. Taxes, if any, and related administrative expenses were ordered to be paid by the Distribution Fund. See the Commission’s Order: Release No. 34-72058.

On June 5, 2014, the Commission issued an order appointing Damasco & Associates LLP, as the Tax Administrator of the Distribution Fund. See the Commission’s Order: Release No. 34-72334.

To date, a total of $364,231.00 has been distributed to harmed investors.

For more information, please contact the Commission:

Office of Distributions


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