Litigation Release No. 16210 / July 13, 1999

United States v. Kenneth Senffner, N.D. Ill., 99 CR 0490, filed July 8, 1999

The Commission announced the return of an indictment against Kenneth Senffner ("Senffner") for obstructing and impeding a Commission injunctive action involving fraudulent prime bank instruments trading, and for criminal contempt for violating a temporary restraining order entered in the action. The indictment alleges that Senffner was a general partner of Clifton Capital Investments, L.P. ("CCI") in 1992. It further alleges that, in June 1994 the Commission filed a lawsuit, SEC v. Lauer, et. al., 94 C 3770 (N.D. Ill.), against Senffner's partner, John Lauer, CCI, and others seeking an injunction prohibiting CCI from committing federal securities fraud violations, and freezing CCI's assets. A temporary restraining order was entered prohibiting the transfer, sale or other disposition of any assets belonging to the defendants. The indictment alleges that Senffner, after receiving notice of the temporary restraining order, and in violation of the order, willfully transferred a check made payable to CCI to a third party in Atlanta, Georgia, and failed to reverse or disclose the transfer. The indictment contains three counts, and alleges that Senffner's actions constitute criminal contempt and obstruction of the due and proper administration of justice.