Litigation Release No. 19700 / May 15, 2006

SEC v. Jeffrey L. Gibson and Investment Property Management, LLC, Civil Action No. 4:05-CV-163-RLV (NDGA)

The Securities and Exchange Commission announced that on May 9, 2006, the Honorable Robert L. Vining, Jr., United States District Judge for the Northern District of Georgia, entered a Final Judgment As To Defendants Jeffrey L. Gibson (Gibson) and Investment Property Management, LLC (IPM). The judgment enjoined the defendants from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and enjoined Gibson from future violations or aiding and abetting violations of Section 206 of the Investment Advisers Act of 1940. The defendants consented to the entry of the judgment without admitting or denying the allegations of the Commission's Complaint. The court ordered the defendants to pay disgorgement in the amount of $427,701.73, and ordered Gibson to pay a civil penalty in the amount of $25,000.

The Complaint, filed on August 5, 2005, alleged that between December 2002 and April 2003, Gibson sold approximately 43 limited partnership interests in American Car Wash Fund, LP (ACW), a limited partnership, and raised approximately $875,000. IPM served as ACW's general manager. From December 2002 through the present, Gibson misappropriated for his personal use approximately $450,000 from ACW. Gibson wrote checks, payable to cash, on ACW's bank accounts and misappropriated the funds from those checks for his personal use. Gibson and IPM regularly sent letters to ACW investors describing annualized rates of return, dividends and property purchases in order to conceal the misappropriation of funds.

See also: L. R. 19331 (August 9, 2005); and L.R. 19339 (August 18, 2005).