U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20244 / August 16, 2007
SEC v. Inter Global Technologies, Inc. and Michael E. Tomayko, (U.S.D.C., Northern District of Texas, Dallas Division, Civil Action No. 3-07 CV 1397 - K)
SEC Files Charges in Connection With Fraudulent Offering Involving Indonesian Oil Refineries
On August 13, 2007, the Securities and Exchange Commission filed a complaint in the United States District Court for the Northern District of Texas, Dallas Division, charging Inter Global Technologies, Inc. ("IGT") and Michael E. Tomayko with selling unregistered securities and misleading investors in connection with the offer and sale of IGT securities. According to the complaint, from about January 2004 until at least Fall 2006, Tomayko, age 59, of Irving, Texas raised at least $14.5 million from over 900 domestic and international investors through a fraudulent, unregistered offering of preferred stock and joint venture interests IGT, a Texas corporation based in Irving.
The SEC's complaint alleges that Tomayko and IGT ("the defendants") lured new investors and induced additional investment from existing ones by claiming to own three valuable licenses to construct Indonesian oil refineries and promising huge returns once the refineries were financed and built. Tomayko repeatedly told investors that IGT would imminently receive funding for construction of the refineries from sources such as letters of credit or other bank instruments provided by a wealthy contact in Indonesia; a hidden vault filled with gold bullion controlled by Indonesian tribal elders; and investments by the Saudi royal family. Defendants represented that investor funds would be used to maintain IGT's Indonesian refinery licenses and procure financing to build the refineries.
In reality, the Commission alleges, Defendants' claims were baseless. Tomayko's schemes to finance the Indonesian refinery were based on dubious and unverified information, and the promised financing has never materialized. Indeed, Tomayko used false bank and other documents to bolster his claims to investors that financing for the refineries was imminent. Contrary to Defendants' representation, Tomayko used millions of dollars of investor funds to pay his personal expenses and support his lavish international lifestyle, and he squandered millions more, without due diligence, chasing financing in Indonesia.
The defendants are charged with securities fraud under 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, and with conducting an unregistered offering under Section 5 of the Securities Act. The Complaint seeks a permanent injunction, disgorgement on ill-gotten gains, civil penalties against each defendant and an accounting of their use of investor funds.