U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20180 / July 3, 2007
SEC v. The Hockey Barn LLC and Jeffrey J. Coleman, Civ. Action No. 07-CV-438-C (W.D.N.Y.)
SEC Files Expedited Action Against The Hockey Barn and its CEO For Defrauding Seniors By Promising Outlandish Investment Returns
The Securities and Exchange Commission announced that today it filed an expedited enforcement action against The Hockey Barn LLC and Jeffrey J. Coleman, Hockey Barn's Chief Executive Officer, in the United States District Court for the Western District of New York. In the complaint, the Commission alleged that from approximately October 2006 through the present, Coleman and the Hockey Barn defrauded investors through an offering of promissory notes and other investment contracts. Among other things, Coleman falsely told investors that they could obtain a return of at least 400% within 60 days from an investment in a purported bond trading program.
The Complaint named the Hockey Barn, a New York limited liability company located in Amherst, New York, as a defendant. The Complaint also named Coleman, age 28, and a resident of East Amherst, New York, as a defendant.
The complaint alleged the following. Hockey Barn purported to be a developer of hockey facilities in New York, Florida, and other states. Coleman falsely told prospective investors that the investments he was offering were to raise financing toward Hockey Barn's purported business goals. Coleman falsely told investors that Coleman and/or Hockey Barn would use theirs and others' invested funds to trade bonds, and that this trading program would produce returns of at least 400% within 60 days. For example, in or about January 2007, Coleman falsely told an approximately 65 year old woman that his purported "war bond" trading program would generate returns of approximately 400% within 60 days. This investor then gave Coleman $25,000 to invest in the purported trading program. When the investor did not receive her promised return, she asked for the return of her original investment. In April 2007, Coleman gave the investor a $25,000 check that then bounced. Additionally, in or about December 2006, Coleman solicited a friend. Coleman falsely told his friend that Coleman planned to pool $1 million from a group of investors to purchase bonds from the U.S. Government and then sell the bonds back to the government after 60 days. Coleman falsely told this friend that a $100,000 investment would generate returns of between $450,000 and $550,000 (450% to 550%). The friend agreed to invest $225,000. To date, this investor has not received any of the promised returns on his investment.
The Commission alleged that the Hockey Barn and Coleman violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The Commission is seeking temporary restraining orders, and preliminary and permanent injunctions against future violations of these provisions. The Commission is also seeking other expedited relief including an asset freeze and accounting.