UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17142 / September 20, 2001
Securities and Exchange Commission v. Alamin, Inc., Financial Resources, George L. Vaughn and Curt Arvidson, Civil Action No. 2:99CV-576J (USDC Utah)
On September 13, 2001, Bruce S. Jenkins, United States District Judge for the District of Utah, signed an order for summary judgment and judgment of permanent injunction and other relief against Alamin, Inc., and George Louis Vaughn, Jr. Vaughn and Alamin were ordered to pay $500 in civil penalties. Defendants Curt Arvidson and Financial Resources were permanently enjoined by consent on July 31, 2001, and ordered to pay $10,000 in civil penalties. Arvidson and Financial Resources have paid that amount to the Commission. All the defendants were enjoined from further violations of Sections 5(c) and 17(a) of the Securities Act of 1933.
The Court found that defendants Alamin and Vaughn violated Sections 5(c) and 17(a) of the Securities Act by soliciting at least 23 municipalities located primarily in the western United States, offering to sell over $649 million in interests in a prime bank trading program; ultimately, none of the municipalities invested in the scheme. The Court found that Alamin and Vaughn claimed they would use the assets as collateral in a prime bank trading program which was endorsed by the International Monetary Fund and guaranteed returns of 130% a month with no risk of loss.