Keely Collins

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Investment Fraud

• Keely Collins
• Dennis Stanko

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SEC Charges Two Texas Men With Defrauding
Investors of 38 Million

• When November 7, 2000
• Who Luis Martinez, Guillermo Wydler, and the
  United American Company (parent company)
• Where The Woodlands, TX
  north of Houston
• Investors Most from Mexico
  and other Latin American
  countries

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SEC Charges Two Texas Men With Defrauding
Investors of 38 Million

• Charge Misleading 560 investors.
• The men promised to invest their money in
  conservative investments, such as money-market
  funds. Instead, they allegedly invested in risky
  bonds and notes issued by companies in volatile
  economies, including Russia, Argentina, Brazil,
  and Venezuela.

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Broker Hit by Costly VerdictJury Finds Norman
Rounds Fraudulently Hid Assets

• When Verdict on November 21, 2000, Rounds
  company has been involved in related lawsuits
  since 1995
• Who Norman P. Rounds and Consolidated Investment
  Services Inc. found guilty of fraud in Denvers
  US District Court
• Where Littleton, Colorado
• CIS Creditors (Investors) Awarded 2.6 million
  in compensation, plus 8 interest beginning 1991,
  and 2.6 million in punitive damages

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• About the Division of Enforcement
• Enforcement Actions
• Civil Suits in Federal Court
• Litigation Releases Descriptions of SEC civil
  suits in the federal courts includes
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• Administrative Proceedings before the Commission
  
• Administrative Proceedings Orders and related
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  administrative proceedings are instituted and/or
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  administrative proceedings.
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  Commission on appeal of Initial Decisions or
  disciplinary decisions issued by self-regulatory
  organizations (e.g., NYSE or NASD).
• Trading Suspensions Announcements of 10-day
  suspensions of trading in a specific security
  when the Commission determines that it is
  required in the public interest and for the
  protection of investors.
• Investors Claims Funds This page alerts
  investors to cases where the SEC has recovered
  money from those who have defrauded investors.
• Internet Enforcement Program Information about
  the SEC Enforcement Division's Internet program
  and other related materials.
• SEC Microcap Fraud Initiatives Information about
  the nature of Microcap Fraud and the SEC's
  response to the problem.
• Prime Bank Fraud Information Center Warning to
  all investors about bogus "prime bank" and other
  banking-related investment schemes, including
  signs of those schemes to watch for.
• Insider Trading Information about bounties for
  persons who report insider trading violations.
• SEC Division of Enforcement Complaint Center How
  to contact the SEC and other agencies about
  fraud.

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Seen a Potential Online Fraud?Tell Us About It.
We want to hear about securities fraud
appearing on-line, by telephone or in the mail.
If you have seen a potential investment fraud,
you may want to use our online complaint form to
file your complaint with us. Or write to
Securities and Exchange CommissionOffice of
Investor Education Assistance450 Fifth Street,
N.W.Washington, D.C. 20549-0213 To reach your
state securities regulator, call the North
American Securities Administrators Association
(NASAA) at [phone] or visit its website.
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Cyber-Scams In Cyber-Space

• Internet has made it easier for investment
  frauds to occur.
• According to the SEC, cyber-scams have increased
  37 since last year.
• Last week, U.S. Federal Securities watchdogs
  reported nearly a quarter of all their
  investigations (which include only high profile
  situations) involve internet related stock fraud

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