U.S. Securities and Exchange Commission
Litigation Release No. 22028 / July 6, 2011
SEC v. Navigators International Management Co., Ltd., James R. Spurger and Benjamin W. Young, Jr., Case No.07-cv-04518 (S.D. Tex.)
Court Enters Final Judgment Against Former Officer of Navigators International Management Co., Ltd.
The Securities and Exchange Commission announced that the Honorable Nancy F. Atlas of the United States District Court for the Southern District of Texas entered a final judgment today against Benjamin R. Young that (i) enjoins him from violating Sections 5 and 17(a) of the Securities Act of 1933 (Securities Act), and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and (ii) finds him liable for payment of $30,000 under Securities Act Section 20(d) and Exchange Act Section 21(d)(3). Young consented to entry of the judgment and did not admit or deny the allegations in the complaint.
According to the Commission's complaint, Young and codefendant James R. Spurger, former officers of Navigators International Management Co., Ltd., a Bahamian Corporation, solicited investors to participate in an unregistered and fraudulent bond funding program. The complaint alleged that investors were promised returns of 67% or more and were assured that their principal was safe and collateralized. The complaint further alleged that investors' funds were not safe and collateralized and that none of the investors received a return of principal or payment of the promised profits.
Earlier, on March 28, 2011, the Court entered final judgments against Spurger and Navigators International Management Co., Ltd. enjoining them from violating Sections 5 and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and (ii) finding them liable for payment of $25,000 and $45,000, respectively, under Securities Act Section 20(d) and Exchange Act Section 21(d)(3). Spurger and the corporation consented to entry of the judgments and did not admit or deny the allegations in the complaint.