U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19802 / August 11, 2006
SEC v. U.S. Wind Farming, Inc., William L. Telander, et al., Case No. 05 C 4259 (N. D. Ill, filed July 25, 2005)
On August 9, 2006, the Commission filed an amended complaint in this matter alleging that Defendant Raymond J. McNamee of Newport Beach, California violated the antifraud provisions of the federal securities laws. The Commission alleged in its initial complaint that McNamee violated the registration provisions of the Securities Act of 1933, and obtained a temporary restraining order and a preliminary injunction against him and other defendants. In addition to alleging the registration violations against McNamee, the amended complaint alleges that he played a much greater role in the U.S. Wind Farming fraudulent scheme. Pursuant to McNamee's instructions, another defendant, William Telander, created U.S. Wind Farming via a series of transactions involving a corporate shell with publicly traded shares. McNamee obtained 25.1 million unregistered U.S. Wind Farming shares from Telander without paying for these shares. McNamee and Telander then drafted and issued fraudulent press releases to hype the market and bolster the prices at which McNamee and other defendants could sell their unregistered U.S. Wind Farming shares. In total, McNamee sold over 17 million U.S. Wind Farming shares for over $400,000, at prices inflated by his fraudulent conduct.
For further information, see Litigation Release No. 19311 (July 26, 2005) and Litigation Release No. 19546 (January 30, 2006).
SEC Complaint in this matter