U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21288 / November 9, 2009
Securities and Exchange Commission v. Thomas B. Evans, Civil Action No. 09-CV-02617 (CMA-CBS) (D. Colo.)
SEC OBTAINS INJUNCTION AND PENALTY AGAINST THOMAS B. EVANS FOR REAL ESTATE OFFERING FRAUD
The Securities and Exchange Commission announced that, on November 6, 2009, it filed a civil action in the United States District Court for the District of Colorado against Thomas B. Evans, a resident of Austin, Texas, alleging that he violated the antifraud provisions of the federal securities laws.
In its Complaint, the Commission alleges that from April 2003 through August 2005, Defendant Thomas B. Evans raised more than $16 million from more than 100 investors through his offerings of interests issued by three Colorado limited partnerships that he controlled. Evans represented that he would use the funds raised by each of the limited partnerships to purchase and renovate apartment buildings in Texas. According to the Complaint, Evans used funds from each offering to pay for operational expenses of the other limited partnerships in direct violation of representations he made in offering materials. In quarterly statements, Evans also made numerous false statements about the status of renovations, apartment occupancy, and financial performance.
Evans agreed to settle the SEC's charges without admitting or denying the allegations in the Complaint. This settlement is subject to approval by the court. Evans agreed to be permanently enjoined from violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Evans also agreed to the entry of an order requiring him to pay a civil penalty of $120,000.