UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16425 / February 4, 2000
SECURITIES AND EXCHANGE COMMISSION v. LAZARUS R. LONG (a/k/a HOWARD TURNEY individually and doing business as New utopia,) USDC/NDOK/TULSA CA No. 99CV 0257BU(M)
The Securities and Exchange Commission announced that on January 20, 2000, the Honorable Michael Burrage, United States District Court for the Northern District of Oklahoma, entered a final judgment of permanent injunction against defendant Lazarus R. Long ("Long") (a/k/a Howard Turney). The judgment permanently enjoined Long from violating Sections 5(a), 5(c) 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. Defendant Long was also ordered to pay disgorgement in the amount of $24,000, plus prejudgment interest, however payment of disgorgement and interest was waived based upon Long's sworn showing of inability to pay. Moreover, the Court did not order Long to pay a civil penalty because of his demonstrated inability to pay. Long consented to the entry of the judgment.
The Complaint, which was filed by the Commission on April 8, 1999, alleged that between May 1998 and March 1999, Long offered and sold securities over the Internet to purportedly fund a new country he claimed was being developed in the middle of the Caribbean Ocean. Long named his new country "New Utopia." In connection with the sales of the New Utopia securities, the Complaint alleged that Long made material misrepresentations and omissions concerning, among other things, the status of construction of the project, the companies associated with the project, the safety of the investment, and the status of the Commission's investigation into his activities. Long was successful in raising $24,000 from the sales of securities.