U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22649 / March 19, 2013
Securities and Exchange Commission v. K2 Unlimited, Inc., 211 Ventures, LLC, Diane Glatfelter, Robert Rice, and Robert Anderson, Civil Action No. 11cv11649
Massachusetts Federal Court Enters Judgments Against Two Defendants Charged in Investment Frauds
The Commission announced that on March 13, 2013, a Massachusetts federal court entered final judgments by default against 211 Ventures, LLC ("211 Ventures"), based in Billerica, Massachusetts, and against Robert S. Anderson, of Madison, Indiana. The two were defendants in a fraud action involving the promotion and sale of fictitious financial instruments and trading programs filed by the Commission on September 19, 2011. The default judgments entered by the Honorable Mark L. Wolf require the two defendants to pay a total of more than $2.3 million in disgorgement of ill-gotten gains, prejudgment interest, and civil penalties, and permanently enjoin them both from future violations of the antifraud and other provisions of the federal securities laws. The Commission's action against three other defendants remains pending.
The Commission's complaint alleged that 211 Ventures purported to offer direct investments in fraudulent and non-existent trading programs, promising high returns and guarantees against loss. The Court ordered 211 Ventures to pay $1,074,000 in disgorgement, $206,502.91 in prejudgment interest, and a civil penalty in the amount of $650,000. The Commission alleged that Anderson offered investors fictitious trading programs through an entity called E-Trust, based on gold or precious metals, medium term notes, or other assets, and received investor funds that he used for his personal gain. The final judgment against Anderson requires him to pay $252,719.53 in disgorgement, $34,574.13 in prejudgment interest, and a civil penalty in the amount of $150,000. The Court also permanently enjoined both Anderson and 211 Ventures from committing further violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 5 of the Securities Act.
The Commission's complaint also charged Diane Glatfelter, of Billerica, MA, and Robert Rice of Tallahassee, Florida, who together own 211 Ventures, and K2 Unlimited, Inc., based in Billerica Massachusetts, of which Glatfelter is sole shareholder. The Commission's case against Glatfelter, Rice and K2 Unlimited, Inc. will continue.
Investors who are offered investments similar to those alleged in the Commission's complaint may want to consult the SEC's website concerning "Warning to All Investors about Bogus "Prime Bank" and Other Banking-Related Investment Schemes," at: http://www.sec.gov/divisions/enforce/primebank.shtml; or, "How Prime Bank Frauds Work," at: http://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml.
For further information, please see Litigation Release No. 22098 (September 19, 2011) [complaint].