UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17187 / October 15, 2001
SEC V. MARK STEVEN SNADER, D/B/A E-HIGHYIELDS.COM AND THE HIGH YIELD CLUB, (U.S. D.C., Northern District of Texas, Dallas Division, Civil Action No. 3-01-CV-2062-X).
On October 12, 2001, the Commission filed a civil action against Mark Steven Snader, individually and d/b/a "e-highyields.com" and "The High Yield Club." In its complaint, the Commission alleged that Snader engaged in fraudulent, unregistered broker activities over the Internet via his website, e-highyields.com. Snader solicited investor funds for "prime bank" type trading schemes, and made false and misleading statements involving his operations, his investment experience, his due diligence and the basis for his investment recommendations.
Contrary to his claims, Snader, who resides in Stevens, Pennsylvania, did not have a staff of analysts working for him. Nor was he advised, on a daily basis, by a network of consultants who provided him with information not available to the general public. Rather, Snader's operation was a one-man show, run completely from his home computer. Further, Snader, who claimed to be a former purchasing manager for one of the top 50 corporations in the world, was in fact a former truck- driver and welder, with a high school education and no investment experience or acumen. Finally, Snader's promises of investment returns, ranging from 60 to 208 percent annually, had no basis in fact.
Simultaneously, with the filing of its action, the Commission announced that Snader, without admitting or denying the Commission's charges, consented to the entry of a permanent injunction enjoining him from further violating Section 17(a) of the Securities Act of 1933, Sections 15(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. As part of the consent order, Snader agreed to pay disgorgement and a civil money penalty in amounts to be determined by the Court and/or by further agreement with the Commission.
Unscrupulous promoters continue to victimize the public with "prime bank" schemes. Accordingly, investors are advised to access the Commission's "Prime Bank" Investor Alert. This warning provides tips on how to avoid becoming a victim of such scams. The investor alert can be found on the Commission's website at www.sec.gov/investor/alerts.shtml. Bottom line: Prime Bank investments do not exist.