U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21842 / February 7, 2011
Securities and Exchange Commission v. Gustav George Bujkovsky, et al., United States District Court for the Southern District of California, Case No. 10-CV1965BEN (filed Sept. 21, 2010).
SEC OBTAINS PERMANENT INJUNCTION AGAINST A CALIFORNIA LAWYER FOR HIS ROLE IN A PHONY INVESTMENT POOL SCHEME AND ORDER SUSPENDING HIM FROM APPEARING OR PRACTICING BEFORE THE COMMISSION
The Securities and Exchange Commission (“Commission”) announced that it obtained a judgment of permanent injunction against Gustav George Bujkovsky, age 68, formerly of Escondido, California, for his role in perpetrating a phony investment pool scheme directed by his clients. Bujkovsky consented to the entry of the permanent injunction, entered on November 22, 2010, which enjoins him from violating the antifraud and securities registration provisions of the federal securities laws.
On February 2, 2011, the Commission instituted proceedings against Bujkovsky under to Rule 102(e) of the Commission’s Rules of Practice suspending him from appearing or practicing before the Commission as an attorney based on the entry of the permanent injunction. Bujkovsky consented to the entry of the order without admitting or denying the Commission’s findings.
The Commission’s complaint, filed September 21, 2010 in federal court in San Diego, alleged that while Bujkovsky represented MAK 1 Enterprises Group, LLC (“MAK 1”) and its principals, he defrauded certain MAK 1 investors, aided and abetted the fraud of MAK 1 and its principals, and he offered and sold MAK 1’s unregistered securities. MAK 1 was a Ponzi scheme and was halted by an emergency action filed by the Commission in federal court in San Diego in August 2009, which charged MAK 1 and its principals with violations of the federal securities laws.
The Commission’s claims for disgorgement plus prejudgment interest and civil penalties from Bujkovsky and disgorgement from relief defendant Betty Hansen remain pending.
Separately, Bujkovsky was sentenced on January 3, 2011 after pleading guilty to felony counts of obstruction of justice (for making false statements to Commission staff in connection with the Commission’s investigation of MAK 1) and income tax evasion. United States of America v. Gustav G. Bujkovsky, U.S. District Court for the Southern District of California, case no. 10CR3467LAB (filed Aug. 31, 2010). Bujkovsky was sentenced to 12 months in federal prison and to three years of supervised release thereafter with special conditions of supervision.
For further information, see Litigation Release Nos. 21306 (November 19, 2009), 21181 (August 20, 2009), and 21749 (November 18, 2010), and Administrative Proceedings 34-60891 (October 19, 2009), 34-61604 (March 1, 2010), and 34-63826 (February 2, 2011).