SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16184 / June 10, 1999
SECURITIES AND EXCHANGE COMMISSION v. DANIEL T. TODT, et. al., 98 Civ. 3980 (JGK) (SDNY)
Inge Marilyn Perry and Bay State Trust Enjoined, Ordered to Pay $25,000 in Total Penalties
On December 1, 1998, the Honorable J. G. Koeltl entered a final judgment on consent against Inge Marilyn Perry, 58, and on May 6, 1999, he entered a final judgment on consent against Bay State Trust in a Commission action involving alleged offers and attempts to sell a forged security. Perry and Bay State, without admitting or denying the Commission's allegations, consented to the final judgments prior to responding to the Commission's complaint. The Commission alleged in a June 5, 1998 complaint that Perry and Bay State were involved with seven other defendants in a scheme to obtain money using fraudulent "bank certificates" in violation of the antifraud provisions of the federal securities laws. This settlement leaves as the only remaining defendants attorneys Daniel T. Todt, described by the Commission as the "architect" of the fraud, and his wife Rebecca L. Todt, against both of whom the Commission has pending a motion for summary judgment.
The Commission alleged in its complaint that Perry and Bay State participated with seven other defendants in an attempt to negotiate at least one such fraudulent bank certificate purportedly issued by the "Mitsubishi B.J. Bank" (the "Mitsubishi Certificate"). The Bank of Tokyo-Mitsubishi Ltd., the FBI, and the Federal Reserve Bank all have confirmed that the certificate is not genuine. The Commission alleged that Perry and Bay State were part of a scheme which would use the Mitsubishi Certificate to generate millions of dollars in payments for themselves, while invoking "humanitarian" goals and the names of "official" entities, such as the Federal Reserve and the United Nations Security Council, in an effort to make their scheme appear legitimate. The final judgment on consent against Perry ordered her to pay a $10,000 penalty, and permanently enjoined her from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933. The final judgment on consent against Bay State ordered that entity to pay a $15,000 penalty, and permanently enjoined it from violating the same provisions. Perry and Bay State had previously consented to the entry of a preliminary injunction against them on June 29, 1998.
For additional information, see litigation release numbers 15771 (June 5, 1998), 15775 (June 9, 1998), 15797 (July 1, 1998) and 15960 (October 28, 1998).