U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20704 / September 5, 2008
SEC v. Rick J. Boros, a/k/a Vincent Kwiatkowski, and North American Mining Ventures, Inc., Civil Action No. 1:08-CV-5004 (N.D. Ill.)(Lindberg, J.)
The Securities and Exchange Commission ("Commission") announced that on September 3, 2008, it filed a Complaint in the United States District Court for the Northern District of Illinois against Rick J. Boros, a/k/a Vincent Kwiatkowski ("Boros"), and North American Mining Ventures, Inc. The Complaint alleges that between May 2005 and June 2007, Boros and North American Mining sold interests in limited partnerships that purportedly operated "low-risk, high-return" gold and silver mines in Durango, Mexico. Boros told investors that investor funds would be used to develop and expand the alleged gold and silver mines. As a result of the offering, the Complaint alleges that Boros obtained at least $1.2 million from approximately 17 investors, a number of whom are elderly and retired. The Complaint further alleges, however, that Boros then misappropriated virtually all of these funds, spending at least $358,358 of investor funds to pay his personal credit card debt, to lease and maintain three BMW automobiles, and to pay for his household expenses and his daughter's college tuition. Boros allegedly also transferred at least $132,750 directly into accounts he controlled and sent at least $251,542 to friends and associates. In addition, Boros allegedly spent investor funds to pay for salon services and visits to spas, to buy clothing, handbags and other personal items.
The Complaint alleges that, as a result of their conduct, the Defendants violated Sections 5 and 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 Commission seeks injunctive relief, disgorgement and civil penalties.