Litigation Release No. 17119 / September 6, 2001
SEC v. Donald Barry Tamres, Civil Action No. IP-99-1767-C-Y/G (S.D. Indiana).
On August 23, 2001, the Honorable Richard L. Young, U. S. District Judge for the Southern District of Indiana, ordered that Defendant Donald Barry Tamres of Carmel, Indiana pay $110,000 in civil penalties for running a fictitious prime bank scheme. Judge Young previously had granted the SEC's motion for summary judgment and permanent injunction against Tamres and certain relief defendants and ordered Tamres to repay $2.3 million to investors.
In this case, Judge Young found that from August 1998 through February 1999, Tamres had run a fictitious prime bank investment scheme called the Asset Enhancement Program. Judge Young found that Tamres misrepresented that the prime bank "investment" he was promoting would provide a risk-free return of $1,500,000 in six weeks for an initial investment of $30,000. Tamres invoked the name of the United States Federal Reserve to cloak his program with an air of legitimacy. Tamres also misrepresented to investors that the investments were guaranteed by a prime European insurance company. Instead of investing the funds entrusted to him, Tamres used the funds to pay off other investors or to buy houses, cars and other items for himself and his family. Based upon his findings, Judge Young held that Tamres violated the antifraud and registration provisions of the federal securities laws. As a result, Judge Young permanently enjoined Tamres from violating the federal securities laws and ordered Tamres to disgorge $2.3 million of his ill-gotten gains and pay a civil penalty of $110,000. Information about prime bank investment schemes is available on the SEC's web site (www.sec.gov).
Judge Young has appointed James Knauer of Kroger, Gardis & Regas, 111 Monument Circle, Suite 900, Indianapolis, Indiana 46204, as receiver in this case.
See previous Litigation Release No. 16369, November 23, 1999.