U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16259 / August 23, 1999
On August 18, Gary L. Taylor granted the summary judgment motion of Kenneth D. Ough, a defendant in a civil enforcement action commenced by the Securities and Exchange Commission. Judge Taylor simultaneously denied the Commission's motion for summary judgment against Defendant Ough.
The Commission's Complaint (filed in August 1998) alleged that Defendant Ough, an investment banker formerly associated with the Rauscher Pierce Refsnes brokerage firm (now known as Dain Rauscher, Inc.), engaged in fraud in the issuance of over $800 million of municipal securities related to the Orange County Investment Pools in 1993 and 1994. The Commission's Complaint alleged that Defendant Ough failed to disclose important information about these securities to investors, including information about the arbitrage purpose of the securities offerings and the contents and risky investment strategy of the County Pools.
As a result of Judge Taylor's ruling, the case against Defendant Ough will not proceed to trial. The decision is being reviewed to determine whether the Commission will appeal.