SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16666 / August 29, 2000
Securities and Exchange Commission v. Internet Telecommunications Albany System SMR, et al., Civil Action No. 1:99CV00539 (CKK) (D.D.C.)
COURT ENTERS FINAL JUDGMENT AGAINST JOHN C. TRIMPIN IN SPECIALIZED MOBILE RADIO FRAUD
The Securities and Exchange Commission announced that on August 7, 2000, the Honorable Colleen Kollar-Kotelly, United States District Court Judge for the District of Columbia, entered a Final Judgment of Permanent Injunction and Other Relief as to John C. Trimpin. The final judgment ordered Trimpin to pay $266,800 in disgorgement, $155,876 in prejudgment interest and a $266,800 penalty. The judgment holds Trimpin jointly and severally liable with other defendants previously enjoined in the case and held liable for Trimpin's amounts of disgorgement, interest and penalty. The Court found that the disgorgement amount represented the amount of investor funds received by Trimpin as a result of his unlawful conduct.
Trimpin admitted the allegations against him contained in the Commission's complaint and consented to the entry of the Final Judgment. According to the complaint, which was filed on March 2, 1999, Trimpin and other defendants engaged in fraud in connection with the offer and sale to the public of securities designated as partnership units in three general partnerships formed to develop specialized mobile radio systems in Albany, New York, Reno, Nevada and Anchorage, Alaska. The complaint alleges that Trimpin and other defendants managed the fund raising and operations of the three partnerships, and disseminated sales materials that contained material misrepresentations and omissions. The complaint further alleges that Trimpin and other defendants controlled the specialized mobile radio licenses. These defendants failed to disclose this control and the sale of the licenses to the partnerships at enormously excessive prices. The Court enjoined Trimpin from violating the securities registration provisions of Sections 5(a) and (c) of the Securities Act and the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
See also Litigation Release Nos. 16073 (March 2, 1999), 16592 (June 15, 2000) and 16660 (August 21, 2000).