Litigation Release No. 17055 / June 29, 2001
SEC v. Terry V. Koontz, et al., Civil Action No. 98cv11904NG (D. Mass., Sept. 17, 1998)
United States v. Terry V. Koontz, Action No. 8:00-CR-341-T-24F (M.D.Fl., Sept. 20, 2000)
The Securities and Exchange Commission ("Commission") announced today that Judge Nancy Gertner of the United States District Court for the District of Massachusetts has entered, by consent, final judgments permanently enjoining Jeffrey A. DeVille and Mykael Deville from future violations of the antifraud and registration provisions of the federal securities laws. Jeffrey A. DeVille was formerly a registered representative associated with World Marketing Alliance, Inc. The DeVilles conducted a prime bank/Ponzi scheme with Terry V. Koontz and others in which they induced more than 80 investors in 16 states to invest over $20 million in a fictitious "international bank debenture trading" program called Private Pool, LLC. In addition to the permanent injunctions, the Court ordered the DeVilles to pay disgorgement, which includes the forfeiture of various assets the DeVilles purchased with proceeds of the fraud, including real estate, automobiles, jewelry, and a boat. The Court also entered, by consent, a final judgment against relief defendant Purr Trust ordering Purr Trust to pay disgorgement jointly and severally with the DeVilles. Based on their demonstrated financial inability to pay, the Court waived partial payment of disgorgement and prejudgment interest by the DeVilles and Purr Trust and did not impose a civil penalty against the DeVilles. The Commission also entered an administrative order permanently barring Jeffrey DeVille from associating with a broker or dealer.
The Commission also announced that in a related criminal proceeding Terry V. Koontz was sentenced in Tampa, Florida, to 15 years and eight months in prison for his role in orchestrating and conducting the scheme together with the DeVilles and others. Koontz had previously pled guilty in Tampa to charges of conspiracy, securities fraud, and wire fraud relating to the $20 million Private Pool scheme and a follow-up prime bank/Ponzi scheme in which he orchestrated the sale of an additional $3 million of fraudulent securities. The charges were previously filed by the U.S. Attorney's Office for the Middle District of Florida (Tampa) in a parallel criminal proceeding.
The Commission filed its emergency action in the U.S. District Court for the District of Massachusetts against Koontz, the DeVilles, Purr Trust, and others on September 17, 1998, alleging violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The DeVilles consented, without admitting or denying the allegations of the Commission's complaint, to the entry of final judgments permanently enjoining them from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission's action is continuing as to the remaining defendants and relief defendants.
For further information about the Commission's emergency action, see Lit. Rel. No. 15892.