LITIGATION RELEASE NO. 16384 / December 10, 1999

SEC v. WEYMAN B. SINYARD, THOMAS G. POULAKIDAS, RANDY DEPOISTER, FINANCIAL RESOURCES ADVISORY, INC. AND JARCO, INC., Civil Action No. C94-5856 ( U.S.D.C. N.D. Illinois)(December 7, 1999)

On December 7, 1999, the Commission filed a motion for an order to show cause why Weyman B. Sinyard ("Sinyard"), individually and as president of Jarco, Inc., should not be held in contempt of court for failing to pay $3,122,270.55 as required by an October 14, 1998 order entered by Judge John F. Grady of the United States District Court for the Northern District of Illinois. That order required Sinyard and Jarco, Inc., jointly and severally, to pay $922,270.55 in disgorgement and prejudgment interest, assessed a civil penalty against Sinyard in the amount of $200,000, and assessed a civil penalty against Jarco, Inc. in the amount of $2,000,000, all as a result of their involvement in a scheme to defraud investors. The October 14, 1998 order was based upon the Amended Complaint filed in the underlying case which alleged that Sinyard and others fraudulently offered and sold to the public investments in the form of unregistered Jarco, Inc. promissory notes, raising over $1 million from at least twenty-three investors residing in Illinois and Indiana. The Amended Complaint further alleged that Sinyard misrepresented and omitted to state material facts regarding, among other things, the risks, return and duration of the investment, the true nature of the investment and the use of investor funds.

For further information, see Litigation Release Nos. 14259 (September 27, 1994), 14308 (October 28, 1994), 14512 (May 26, 1995), 14603 (August 15, 1995), 14863 (April 5, 1996), 14883 (April 17, 1996), 15650 (February 23, 1998).