SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 47121 / January 3, 2003
File No. 3-11002
ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST DAVID EDWARDS, JAMES EDWARDS, KEVIN LYNDS AND GERALD J. STOCK
The Commission announced that it issued an Order Instituting Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Order") against David Edwards ("D. Edwards"), James Edwards ("J. Edwards"), Kevin Lynds ("Lynds") and Gerald J. Stock ("Stock"). In the Order, the Division of Enforcement alleges that from at least January 1999 through March 25, 2002, the date that the Commission initiated a civil action against these defendants, D. Edwards, J. Edwards, Lynds and Stock were acting as an unregistered brokers, and on May 7, 2002, these defendants were enjoined from violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Exchange Act of 1934 and Rule 10b-5 thereunder, by the U.S. District Court for the Northern District of Texas (Dallas Division) [SEC v. Resource Development International, et al., 3:02-CV-0605-R]. The Commission's Complaint alleged that D. Edwards, James Edwards, Lynds, Stock and others raised more than $98 million through the offer and sale of unregistered securities in nonexistent "prime bank" trading programs. The Complaint alleged that investment funds were misappropriated for personal and unauthorized uses, such as making Ponzi payments.
A hearing before an administrative law judge will be scheduled to determine whether the allegations in the Order are true and to determine what remedial action, if any, is appropriate in the public interest.