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U.S. Securities and Exchange Commission


Litigation Release No. 20358 / November 5, 2007

SEC v. Robert Kasirer, et al., Case Number 05-CV-3059-RSWL (C.D. Calif.)

SEC Obtains Final Judgment Against Robert A. Kasirer in Municipal Revenue Bond Offering Fraud

The Securities and Exchange Commission (Commission) announced that on October 31, 2007, the Honorable Ronald S. W. Lew, Judge of the United States District Court for the Central District of California, issued a final judgment against Defendant Robert A. Kasirer ("Kasirer") which: (1) permanently enjoined Kasirer from violating 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 (2) ordered Kasirer to pay disgorgement in the amount of $2,193,565, plus prejudgment interest in the amount of $2,797,869, for a total of $4,991,434. Kasirer consented to the entry of the final judgment without admitting or denying the allegations contained in the Commission's Complaint.

The Commission's Complaint alleged that from February 1996 through August 1999, Kasirer and others ("the Defendants"), acting in concert, fraudulently offered and sold over $131 million of municipal revenue bonds to members of the public to finance the development of ten healthcare facilities by Heritage Housing Development, Inc. The Defendants offered and sold the bonds in question through a series of eleven offerings underwritten by the now-defunct Minnesota securities dealer Miller & Schroeder Financial, Inc. The bonds were purchased by more than 1,800 investors residing in 36 States. Kasirer was the president of the company that selected the properties to be developed and then managed the Heritage facilities. The Complaint further alleged that Kasirer directed the wrongful commingling and diversion of millions of dollars of bond proceeds and concealed that practice from investors. The Complaint also alleged that Kasirer, acting knowingly or with a reckless disregard for the truth, was the primary author of bond prospectuses which misled investors, and personally profited from his scheme.

For additional information, see Litigation Releases Nos. 18774 and 19131.



Modified: 11/05/2007