Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Friday, February 19, 2010

Pacific Asian Atlantic Foundation Settles SEC Fraud Charges over Worthless Bonds

The SEC settled fraud charges against Pacific Asian Atlantic Foundation, a purported international humanitarian organization, and its president and chief executive officer for fraudulently offering billions in worthless bonds to several U.S broker-dealers.  The SEC's complaint, filed in the United States District Court for the Central District of California, charges Samuel M. Natt  and Pacific Asian Atlantic Foundation ("PAAF"), with offering billions in fraudulent PAAF bonds from late 2006 through 2009. The complaint alleges that the defendants created the false impression that the bonds were genuine debt securities by drafting and disseminating fraudulent offering memoranda that misrepresented, among other things, PAAF's assets and financial condition, its ability and intent to pay the principal and interest on the bonds, the riskiness of the offering, and PAAF's intended use of the bond proceeds. The complaint further alleges that Natt and PAAF attempted to legitimize the bonds by obtaining corporate bond identification numbers from the CUSIP Service Bureau based upon PAAF's misleading offering memoranda. According to the complaint, the defendants took these actions to ensure that registered broker-dealers and other financial institutions would accept the worthless bonds and deposit them into accounts held by PAAF.

Natt and PAAF have agreed to settle this case without admitting or denying the allegations in the complaint. Natt and PAAF consented to a permanent injunction from further violations of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933. In addition to the permanent injunction, Natt consented to pay a $50,000 civil penalty.

http://lawprofessors.typepad.com/securities/2010/02/pacific-asian-atlantic-foundation-settles-sec-fraud-charges-over-worthless-bonds.html

SEC Action | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a8b89060970b

Listed below are links to weblogs that reference Pacific Asian Atlantic Foundation Settles SEC Fraud Charges over Worthless Bonds:

Comments

Tracing and securing stolen assets is not. Acting fast and targeted is an obvious necessity for hitting fraudsters where it hurts them most. Inside knowledge about local jurisdiction, regulations and proceedings will help you to succeed.

Posted by: Buy viagra online | Aug 12, 2010 2:15:51 AM

Post a comment