U.S. Securities and Exchange Commission
LITIGATION RELEASE NO. 18752 / June 17, 2004
SECURITIES AND EXCHANGE COMMISSION V. KENNETH R. WARD, Civil Action No. 04-2272 (USDC/Southern District of Texas/Houston Div.)
The Securities and Exchange Commission announced that on June 15, 2004, it filed an Application for an Order Directing Compliance With an Order of the Securities and Exchange Commission in the United States District Court for the Southern District of Texas, seeking to enforce a Commission Order finding that defendant Kenneth R. Ward violated the antifraud provisions of the federal securities laws and requiring Ward to pay disgorgement and a civil penalty. In an Opinion issued on March 19, 2004, the Commission found that Ward, while associated with Government Securities Corporation of Texas, a now-defunct broker-dealer, defrauded certain Texas municipalities through the offer, sale and purchase of unsuitable high-risk mortgage derivative securities and wrongfully profited from his fraudulent conduct. The Commission's Application alleges that Ward failed to comply with the terms of the Commission's March 19, 2003 Opinion and Order, which, among other things, required that: (1) Ward pay disgorgement in the $249,711, plus prejudgment interest; and (2) Ward pay a civil penalty in the amount of $100,000. In this action, the Commission seeks a federal district court order requiring Ward to comply with the Commission's Order.
SEC Complaint in this matter