U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19324 / August 4, 2005
S.E.C. v. Hatch, Docket No. 2:05CV00654 PGC (USDC, D.Ut.)
On August 4, 2005, the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah, against Dale C. Hatch (Hatch), the former director of the Utah Educational Savings Plan. The Complaint alleges that Hatch violated the securities laws by misappropriating funds that should have been allocated to the accounts of participants who had placed their money with the UESP. The Complaint also alleges that Hatch established secret accounts and transferred over $500,000 in unallocated participant funds into Hatch's nominee accounts. Finally, the Complaint alleges that Hatch transferred approximately $85,000 from the secret nominee accounts into personal bank accounts for his own use.
The Complaint alleges that Hatch violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Commission seeks an injunction from future antifraud violations and civil money penalties.
SEC Complaint in this matter