U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16282 / September 15, 1999
SECURITIES AND EXCHANGE COMMISSION v. LELONG INVESTMENT GROUP, LLC and JAMES A. MARINO, Civil Action No. CV 99-09304 JSL (RCx) (C.D. Cal.).
The Securities and Exchange Commission today filed a Complaint in federal court in Los Angeles against LeLong Investment Group, LLC of Encino, California and James A. Marino, 52, of Moorpark, California. The Complaint alleges that from December 1997 to June 1999, the Defendants raised over $300,000 from investors who were told, among other things, that the money would be used to finance low budget films and that their investment was insured by Lloyd's of London.
According to the Complaint, the Defendants first raised $80,000 from seven investors who were told they were lending money to be used as start-up expenses for LeLong. Thereafter, the Defendants raised over $220,000 from 19 investors. The Complaint alleges that the Defendants lied to investors about certain important facts:
The Complaint further alleges that Marino misused investors' funds by transferring funds to his own account and using a portion of the funds to pay his personal expenses.
The Complaint alleges that the Defendants violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, the antifraud provisions. The Complaint also alleges that the Defendants violated Section 5 of the Securities Act, the securities registration provision. The Complaint seeks permanent injunctions against the Defendants, civil penalties, and disgorgement of all profits derived from the fraudulent activities.