September 8, 2008
SEC Charges Fraud in the Sale of Mining Interests
The SEC filed a complaint on September 3, 2008, in the United States District Court for the Northern District of Illinois, against Rick J. Boros, a/k/a Vincent Kwiatkowski ("Boros"), and North American Mining Ventures, Inc. The Complaint alleges that between May 2005 and June 2007, Boros and North American Mining sold interests in limited partnerships that purportedly operated "low-risk, high-return" gold and silver mines in Durango, Mexico. Boros told investors that investor funds would be used to develop and expand the alleged gold and silver mines. As a result of the offering, the Complaint alleges that Boros obtained at least $1.2 million from approximately 17 investors, a number of whom are elderly and retired. The Complaint further alleges, however, that Boros then misappropriated virtually all of these funds to pay his personal credit card debt, to lease and maintain three BMW automobiles, and to pay for his household expenses and his daughter's college tuition. The Complaint alleges that, as a result of their conduct, the Defendants violated Sections 5 and 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 seeks injunctive relief, disgorgement and civil penalties.
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