UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 16054 / February 4, 1999 SECURITIES AND EXCHANGE COMMISSION v. LENNOX INVESTMENT GROUP, LTD., ACTIVE INTERNATIONAL, INC., RANDALL W. LAW, JAMES F. WARDELL, MONICA M. ILES, FRANK L. PEITZ, AND DANIEL B. BENSON, 4:98CV536-Y, USDC, ND/TX (Fort Worth Division) On January 29, 1999, Judge Terry R. Means, United States District Judge for the Northern District of Texas, entered an order granting the Securities and Exchange Commission’s ("Commission") motion for default judgment against defendants Daniel B. Benson ("Benson") and Active International, Inc. ("Active"), and relief defendants Benson Financial, Inc. ("BFI"), P.B.F. Capital Group, Inc. ("PBF"), and I.B.I., Inc. ("IBI"). The Court ordered Benson and Active, and relief defendants BFI, PBF and IBI, to pay disgorgement in amounts representing money or the value of property received from funds collected from investors as a result of the defendants’ violations of the federal securities laws. Specifically, Benson, Active, and relief defendants BFI, PBF and IBI, were ordered to disgorge the following amounts: (1) Benson and Active, jointly and severally - $11,109,000, plus prejudgment interest of $2,500,000; (2) BFI - $2,053,586, plus prejudgment interest of $445,099; (3) PBF - $3,949,273, plus prejudgment interest of $839,519; and (4) IBI - $335,000, plus prejudgment interest of $18,196. The Commission has submitted an application to the Court proposing civil penalties of $100,000 against Benson and $500,000 against Active. The Commission’s complaint charged Benson and Active, and other defendants, with raising approximately $11.1 million from more than 50 investors in at least 10 states through the fraudulent offer and sale of unregistered "prime bank" securities. Investors were told that their funds would be placed in an escrow account, with the investment principal guaranteed, and that their funds would be invested in a trading program where investors could expect a yield of 122.5% per week for 40 weeks during the 54 week term of the program. In fact, according to the complaint, the trading program did not exist and the defendants, instead of investing the funds, stole the entire $11.1 million of investors’ funds which were disbursed for the benefit of themselves and their designees, including the relief defendants. The Court’s latest order followed a November 24, 1998 order in which the Court entered permanent injunctions by default against Benson and Active, enjoining them from further violations of the antifraud provisions of the federal securities laws found in Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.