UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16531 \ May 1, 2000
Securities and Exchange Commission v. International Heritage, Inc., Stanley H. Van Etten, Claude W. Savage, Larry G. Smith, and International Heritage, Incorporated, Civil Action No. 1:98-0803-CV-RWS (NDGA August 24, 1999) \
Show Cause Order Issued Against Claude W. Savage
The Securities and Exchange Commission announced today that the Honorable Richard W. Story, United States District Judge for the Northern District of Georgia, entered an Order To Show Cause why Defendant Claude W. Savage ("Savage") should not be held in civil contempt for his violation of the Court's August 24, 1999 order requiring him to pay disgorgement.
The Commission's complaint, filed on March 16, 1998, alleged that International Heritage, Inc. ("IHI"), through Savage and others, solicited individuals throughout the United States to invest in a pyramid scheme.
On August 24, 1999, a final judgment of permanent injunction was entered against Savage, restraining and enjoining him from further violations of 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. Savage consented to the entry of this permanent injunction without admitting or denying the allegations of the Commission's complaint. The Court ordered disgorgement against Savage in the amount of $2,251,491, but due to a demonstrated inability to pay, the Court ordered him to pay $50,000, waived payment of the remaining disgorgement, pre-judgment and post-judgment interest, and did not impose a civil penalty. The Commission's application for an order to show cause alleged that Savage had failed to pay the disgorgement required by the final judgment.
See also: L. R. 15672 (March 17, 1998); L. R. 16264 (August 26, 1999); L. R. 16330 (October 7, 1999); and L. R. 16407 (January 10, 2000)