LITIGATION RELEASE NO. 16245 / August 5, 1999
Securities and Exchange Commission v. Alamin, Inc., Financial Resources, George L. Vaughn and Curt Arvidson, Civil Action No. 2:99CV-576J (USDC Utah)
On August 4, 1999, Bruce S. Jenkins, United States District Judge for the District of Utah, issued a Temporary Restraining Order halting the fraudulent activities of Alamin, Inc., Financial Resources, George L. Vaughn, and Curt Arvidson. The Commission's Complaint alleges that the defendants solicited at least 23 municipalities located primarily in the western United States, offering to sell over $649 million in interests in a prime bank trading program.
While none of the municipalities has invested in the scheme, the Commission alleges that the defendants violated Sections 5(c) and 17(a) of Securities Act of 1933 by making offers through their fraudulent misrepresentations. Alamin, Inc., Financial Resources, Vaughn, and Arvidson solicited municipalities into putting liquid assets into a trust and which would be administered by the defendants. The defendants claimed they would use the assets as collateral in a prime bank trading program, which was endorsed by the IMF and would guarantee returns of 130% a month with no risk of loss. The Commission alleges that the prime bank schemes do not exist and that the defendants misrepresented the risk of loss and the returns promised.
The Court has set a hearing on August 16, 1999 for the Commission's requests for a Preliminary Injunction.