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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC

Litigation Release No. 15726 / April 29, 1998

SECURITIES AND EXCHANGE COMMISSION v. CHRISTOPHER M. PEDERSEN,

Civil Action No. 95-6488 WJR (RNBx) (C.D. Cal.)

The Securities and Exchange Commission ("Commission") announced that on April 21, 1998, Judge William J. Rea of the United States District Court in Los Angeles entered a judgment of permanent injunction against defendant Christopher M. Pedersen of Memphis, Tennessee. The Court enjoined Pedersen from future sales of unregistered securities and the use of fraudulent sales practices. The Court also ordered Pedersen to pay a civil penalty in the amount of $400,000.

The Commission alleged that from 1984 to 1992, companies controlled by Pedersen raised approximately $10 million through the sale of oil and gas limited partnerships and other interests to several hundred investors in various states. These interests were not registered as securities with the Commission. In connection with the sales, Pedersen made material misrepresentations and omissions concerning the use of investor funds, the purchase of bonds purportedly backing the oil and gas limited partnership investments, and the financial stability of the issuing companies. The Commission asserted that Pedersen’s conduct violated Sections 5(a) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

http://www.sec.gov/litigation/litreleases/lr15726.htm


Modified:04/29/1998