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U.S. Securities and Exchange Commission


Litigation Release No. 19608 / March 14, 2006

Securities and Exchange Commission v. Gary Lynn McDuff, Misc. Action No. 406-MC-Y (N.D. Tex. filed March 10, 2006)

Commission Files Subpoena Enforcement Action Against Gary Lynn McDuff

On March 10, 2006, the Securities and Exchange Commission filed an application with the United States District Court for the Northern District of Texas, Fort Worth Division, for an order to enforce investigative subpoenas served on Gary Lynn McDuff, age 51, a resident of Deer Park, Texas.

The Commission's application and supporting papers allege that on June 1, 2005, the Commission issued a Formal Order of Private Investigation entitled In the Matter of Megafund Corp. On January 25, 2006, the Commission issued investigative subpoenas to McDuff in the course of that investigation into possible violations of the federal securities laws. McDuff may have participated in multiple fraudulent unregistered securities offerings, including the multi-million dollar ponzi scheme at issue in SEC v. Megafund Corp., et al., Civil Action No. 3-05-CV-1328-L (N.D. Tex. filed July 1, 2005). The subpoenas required McDuff to produce documents relevant to the investigation and to appear before the Commission for testimony. The Commission alleges that, as of the date of its application, McDuff failed to produce any of the subpoenaed documents and failed to appear for testimony, has no valid justification for his failure to comply, and a court order is necessary to compel McDuff to provide the subpoenaed documents and to appear for testimony.

A hearing on the Commission's application has not yet been scheduled.



Modified: 03/14/2006