U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16809 / November 24, 2000
SECURITIES AND EXCHANGE COMMISSION V. CONCORD CAPITAL ENTERPRISE, DBA CONCORD CAPITAL INC. AND CONCORD CAPITAL ENTERPRISES, SCOTT YOSHIZUMI, ANN TA, AND DIONISIA PAPPAS, Civil Action No. SA CV 00-1131 AHS (EEx) (C.D. Cal.)
The Securities and Exchange Commission ("Commission") today announced that on November 21, 2000, U.S. District Judge Alicemarie H. Stotler granted the Commission's renewed application for a temporary restraining order, halting an ongoing prime bank scheme perpetrated by Concord Capital Enterprise, an entity located in Cerritos, California, and Scott Yoshizumi, a twice-convicted felon. The Commission alleged that the defendants have raised at least $1.5 million from at least 25 investors nationwide. The Commission's initial application for a TRO was denied by the Court on November 16, 2000.
The Commission's Complaint alleges that from at least November 1999 to the present, Concord and Yoshizumi have engaged in a fraudulent scheme involving an investment in a Bank Debenture Program. The Complaint further alleges that the offering documents distributed by the defendants and their agents represent that client funds will be used solely for participating in the Bank Debenture Program with the "top 200 world banks" and that investors will receive two or four percent profit per month. Investors are further told that their funds will be placed in a "special account" until sufficient funds are accumulated to enter into the program. In fact, the Bank Debenture Program is a fraudulent investment scheme and investor funds are commingled into several Concord accounts and immediately withdrawn for various business expenses and personal uses including the purchase of a $1.3 million home in Fullerton for relief defendant Ann Ta and a $145,869 Mercedes Benz automobile for relief defendant Dionisia Pappas. The Commission's Complaint does not allege that Ta and Pappas violated the securities laws but names them as relief defendants for the purpose of obtaining disgorgement of assets that allegedly received as the result of the fraud perpetrated by Concord and Yoshizumi. Additionally, approximately $1 million from the Concord accounts was paid to various entities that do not appear to have any relation to the Bank Debenture Program and about $800,000 was paid as commissions to various individuals, including sales agents.
The Court's Order temporarily enjoins Concord and Yoshizumi from violating the antifraud provisions, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act and Rule 10b-5. Among other things, the Order also imposes a freeze on the assets of all of the defendants. A hearing on the Commission's motion for a preliminary injunction will be held on December 1, 2000. In addition to the preliminary relief, the Commission also seeks a judgment of permanent injunction, disgorgement and civil penalties against Concord and Yoshizumi and disgorgement against Ta and Pappas.