U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20509 / March 25, 2008
Securities and Exchange Commission 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)
District Court Enters Interlocutory Judgment in Connection With Fraudulent Offering Involving Indonesian Oil Refineries
On November 19, 2007, United States District Judge Ed Kinkaede entered an Interlocutory Judgment by Consent Granting Permanent Injunction and Other Equitable Relief As to Defendants Inter Global Technologies, Inc. and Michael E. Tomayko. Without admitting or denying the allegations in the Commission's Complaint, the Defendants consented to entry of the Interlocutory Judgment prohibiting them from committing future violations of the antifraud and registration provisions of the federal securities laws. The Commission may file a future application with the Court to determine monetary relief in the form of disgorgement, plus prejudgment interest, and an appropriate civil penalty.
The Complaint, filed on August 13, 2007, charges 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 in IGT, a Texas corporation.
The Complaint alleges that Tomayko and IGT 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. The 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, the 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. (See Lit. Rel. 20244, August 16, 2007).