UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16864 / January 19, 2000
SECURITIES AND EXCHANGE COMMISSION v. Jon F. Williams, et al., Civil Action No. C-00-594 SC (USDC ND Cal.)
The Commission announced that a federal judge in San Francisco entered judgment against Jon F. Williams of Los Angeles on December 8, 2000. Williams was the owner of GSG Financial, which owned Global Strategies Group, Inc., a now defunct small brokerage firm headquartered in San Francisco. The court ordered Williams to pay a $100,000 civil penalty and refrain from future violations of the antifraud provisions of the federal securities laws.
The Commission alleged in its complaint that Williams and others made false statements and withheld material information concerning the sale of $2.1 million in unregistered stock repurchase agreements. Under these agreements, investors purchased shares in start up companies and were promised that the stock would be repurchased within six months for a 20 percent or greater return. The Commission asserted that Williams and others misled investors concerning the actual use of their money, the likelihood of repayment and the investors' ability to sell the underlying stocks.
Williams consented to the judgment without admitting or denying the Commission's allegations.
In a separate action on December 21, 2000, the Commission barred Williams from association with any broker or dealer based upon the judgment entered by the federal court.
The charges against Williams were brought under Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.