U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17252 / December 3, 2001
SEC v. BIJ Financial Services d/b/a Molla Investments, New Era Enterprises Company and
Brian K. Miles,Civil Action No. 01-Z-2322 (District of Colorado)
Today, the Securities and Exchange Commission filed suit in the United States District Court for the District of Colorado against BIJ Financial Services d/b/a Molla Investments, New Era Enterprises Company and Brian K. Miles, all of Denver. The Commission alleged that, beginning in November 2000 the defendants fraudulently raised at least $200,000 from investors through the sales of "units" in their "Venture Capital Program." The Commission further alleged that the defendants promised investors returns of 20% monthly or 40% quarterly with no risk to their principal. The returns were to be generated through defendant Miles' trading in S&P 500 futures. The Commission alleged that these representations were on their face false and misleading. Additionally, the Commission alleged that the defendants stopped paying investors their promised returns in August 2001. The defendants claimed, the Commission alleged, that they could no longer pay the returns because the Commission had frozen the funds in defendant Molla Investments' Nevada bank account. In fact, the Commission had not brought any type of enforcement action against any of the defendants before this one and had not obtained a freeze of the defendants' assets.
The Commission alleged that the defendants violated the antifraud provisions of the federal securities laws set forth in Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission's action seeks permanent injunctions prohibiting future violations of these provisions, disgorgement of the defendants' ill-gotten gains plus prejudgment interest, and civil penalties against each defendant. Additionally, the Commission's action seeks emergency injunctive and equitable relief consisting principally of a temporary restraining order and an order freezing each defendant's assets.