Foundation Selling Chinese Bonds Ordered to Produce Records to the SEC
Litigation Release No. 24074 / March 22, 2018
SEC v. American Bondholders Foundation, LLC, No. 18-cv-1006 (N.D. Ill. filed Feb. 8, 2018)
A federal court has ordered a Tennessee-based limited liability company to produce documents to the Securities and Exchange Commission, which is investigating possible fraud in connection with defaulted Chinese bonds offered and sold by the company.
On February 8, 2018, the SEC filed a subpoena enforcement action against American Bondholders Foundation, LLC (ABF), a Tennessee-based limited liability company, for failing to produce documents in response to an investigative subpoena. On March 16, 2018, the Honorable Matthew F. Kennelly of the U.S. District Court for the Northern District of Illinois entered an order requiring ABF to produce all non-privileged documents responsive to the SEC's subpoena by April 6, 2018. ABF consented to the order.
The SEC is continuing to conduct its fact-finding investigation into these matters and has not concluded that there have been any violations of the federal securities laws.