U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21461 / March 25, 2010
Securities and Exchange Commission v. James H. Park, Civil Action No. 6:09-cv-1137-Orl-22DAB (M.D. Fla.)
Court Enters Final Judgment of Permanent Injunction and Other Relief Against James H. Park
The Commission announced that on March 15, 2010, the Honorable Anne C. Conway of the United States District Court for the Middle District of Florida entered a Final Judgment of Permanent Injunction and Other Relief Against Defendant James H. Park. The final judgment enjoins Park from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition to injunctive relief, the final judgment orders Park to pay disgorgement of $143,031, prejudgment interest of $13,763 and a civil penalty of $130,000. Park consented to the entry of the final judgment without admitting or denying any of the allegations in the Commission's complaint.
The Commission commenced this action on July 1, 2009, by filing an action against Park for his alleged role in a fraudulent pyramid scheme. Wealth Pools International, Inc. (Wealth Pools) purported to be a multi-level marketing company selling a language tutorial DVD through a network of members around the world. The Commission alleged that in reality, it was a fraudulent pyramid scheme premised on the sale of memberships and thus destined to collapse, leaving the majority of investors with substantial losses. The complaint alleged that Park established the telemarketing sales force at Wealth Pools, headed the customer service department, and solicited investors into the fraudulent pyramid scheme. The complaint also alleged that while offering and selling Wealth Pools' securities, Park misled investors about Wealth Pools' business structure, the safety of the Wealth Pools investment, and the dilutive effect on the commissions from the addition of new investors.
For further information, see LR-21115 / July 1, 2009.