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It’s A Long Process

The Securities and Exchange Commission (SEC) filed an enforcement action against Jack A. Calvin in March of 2003 and obtained a default judgment in December of 2003.  The Court found Calvin, of Ozark, Missouri, liable for securities fraud and ordered him to pay  $6,114,283.   
In January of 2007, a federal grand jury indicted Calvin.  The indictment alleged that [...]

The Securities and Exchange Commission (SEC) filed an enforcement action against Jack A. Calvin in March of 2003 and obtained a default judgment in December of 2003.  The Court found Calvin, of Ozark, Missouri, liable for securities fraud and ordered him to pay  $6,114,283.   

In January of 2007, a federal grand jury indicted Calvin.  The indictment alleged that between January of 1999 and March 2002 Calvin defrauded about 115 investors out of more than $2.8 million by selling securities in a trading program called Growth Benefit Systems.  The program was completely fictitious.  Calvin told investors that their money would be pooled to buy “Prime Bank” instruments that would be traded by top banks.  He also promised returns as high as 20 percent. But, according to the complaint, Growth Benefit Systems never existed, so all of Calvin’s representations were false.   

In November of 2007, Calvin entered a guilty plea to one count of securities fraud.  And then, on November 18, 2008, the United State Distict Court for the Western District of Missouri sentenced Calvin to 200 months in prison, followed by 3 years of supervised release.  The Court also ordered Calvin to pay $2,083,736.41 in restitution.   

Calvin’s salary for making license plates in prison will not put a dent in his restitution tab.  After 16 years in prison, he will leave prison for, perhaps, more lucrative work.  But he will never make restitution a priority.  Even if he did, could the victims of his fraud wait that long? 

If you’re a baby boomer or senior citizen with part of your nest egg invested, or if you’re looking to invest, investigate before it’s too late.  Before you trust your money with a broker, be sure the broker is trustworthy.

 

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