U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21664 / September 24, 2010
Securities and Exchange Commission v. Mark E. Salyer, et al., Case No.:2:08-CV-179 (E.D. Tenn.)
Final Judgment Setting Disgorgement and Prejudgment Interest and Imposing Civil Penalty Entered Against Defendant Mark E. Salyer and Relief Defendants, Salmar Investors Group, LLC And Horizon Holdings, Inc.
The Securities and Exchange Commission announced that on August 18, 2010, the United States District Court for the Eastern District of Tennessee entered a Final Judgment Setting Disgorgement and Prejudgment Interest and Imposing Civil Penalty against defendant Mark E. Salyer ("Salyer") and relief defendants, Salmar Investors Group, LLC ("Salmar") and Horizon Holdings, Inc. ("Horizon Holdings"). As amended on September 21, 2010, the Final Judgment holds Salyer, Salmar, and Horizon Holdings jointly and severally liable for disgorgement of ill-gotten gains they received as a result of violations of the federal securities laws, together with prejudgment interest thereon, for a total disgorgement of $6,284,819.37. In addition, the court ordered Salyer to pay a civil penalty of $130,000 pursuant to Sections 20(d) of the Securities Act of 1933 (the "Securities Act") and Section 21(d) of the Securities Exchange Act of 1934 (the "Exchange Act").
Previously, the Commission filed a complaint against Salyer, Salmar, and Horizon Holdings alleging violations of the antifraud provisions of the federal securities law in connection with Salyer's misappropriation of millions of dollars from customers of MetLife Securities, Inc. ("MetLife") where he was formerly employed as a registered representative. Salyer controlled both Salmar and Horizon Holdings which received funds fraudulently diverted by Salyer from several MetLife customer accounts. MetLife is a broker-dealer and investment adviser registered with the Commission. Salyer previously consented to a judgment that permanently enjoins him from future violations of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
For additional information, see LR-20696 (August 28, 2008) and Rel. 34-59227; IAA Rel. 2826; File No. 3-13330 (January 12, 2009).