U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20107 / May 9, 2007
SEC v. Albert E. Parish, Jr., Parish Economics LLC and Summerville Hard Assets LLC, Civil Action No. 2:07-CV-00919-DCN (D. S. C.)
On May 4, 2007, the Honorable David C. Norton, U. S. District Judge for the District of South Carolina, entered an Order of Permanent Injunction as to defendants Albert E. Parish (Parish), Parish Economics, LLC (Parish Economics) and Summerville Hard Assets LLC (Summerville). The order restrained and enjoined the defendants from future violations of 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. The order further restrained and enjoined Parish and Parish Economics from violating, or aiding and abetting violations of, Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 . The defendants consented to the entry of the order without admitting or denying any of the allegations of the Commission's complaint.
The Commission's complaint, filed on April 5, 2007, alleged that Parish and Parish Economics fraudulently operated five investment funds which commenced operations at various times since 1986. Four of the funds were described as "informal pools of money" through which investors could invest in, respectively, commodities and securities futures products (the Futures Pool), bonds (the Hedged Income Pool), stocks (the Stock Pool), and hard assets such as expensive watches, jewelry and fine art (Hard Asset Pool). The fifth fund is defendant Summerville. Summerville also purported to invest in various hard assets such as jewelry and collectibles. The Commission alleged that the defendants provided statements to investors and placed information on the Parish Economics website representing that the funds had been trading profitably and that the funds collectively held $134 million in assets. In fact, brokerage accounts represented to hold millions of dollars of assets for the funds do not hold significant funds.
Parish is a Summerville, SC promoter. Parish Economics and Summerville are South Carolina limited liability corporations controlled by Parish.
See also: L.R. 20070 (April 5, 2007)