SEC v. Millennium Financial, Ltd.; and Ian Scott, No. LR-19926, Southern District of New York (Nov. 28, 2006) — Press Release
raw: Millennium Financial, Ltd.
Millennium Financial, Ltd., No. LR-19926 (S.D.N.Y. Nov. 28, 2006)
Ian Scott was barred by a U.S. court from attempting to seize over $1.3 million in fraudulently obtained investor funds from Millennium Financial, Ltd.'s frozen Bank of Nevis account, after the SEC proved he violated a receiver’s authority in a $17.2 million boiler-room scheme.
The U.S. Securities and Exchange Commission obtained a preliminary injunction against Ian Scott for attempting to gain control of over $1.3 million in investor funds held in a Millennium Financial, Ltd. account at the Bank of Nevis International in St. Kitts. Millennium Financial had been found liable in a 2005 final judgment for defrauding hundreds of investors of $17.2 million through an international boiler-room scheme, with a court-appointed receiver and claims process established to return funds to victims. Scott was enjoined from initiating or participating in any legal proceedings related to the funds outside the Southern District of New York and prohibited from acting on behalf of Millennium.
The U.S. Securities and Exchange Commission obtained a preliminary injunction on November 14, 2006, against Ian Scott for attempting to seize over $1.3 million in investor funds held in Millennium Financial, Ltd.'s frozen account at the Bank of Nevis International in St. Kitts. Millennium Financial had been sued by the SEC in May 2002 for operating an international boiler-room scheme that defrauded hundreds of investors of $17.2 million, leading to a December 2005 final judgment ordering full disgorgement of those ill-gotten gains. In May 2006, the court established a claims process to distribute recovered funds to victims, and appointed a receiver to manage and protect the assets. The U.S. District Court for the Southern District of New York found sufficient evidence that Scott was unlawfully attempting to assert control over the frozen funds in the name of Millennium, in direct violation of the receiver’s authority. To prevent further interference, the court issued a preliminary injunction barring Scott from prosecuting, initiating, or participating in any legal action regarding the funds outside the Southern District of New York. The injunction also explicitly prohibited Scott from purporting to act on behalf of Millennium Financial, Ltd. in any jurisdiction. This action reinforced the court’s control over the assets and protected the integrity of the victim compensation process.
Extracted insights
- $17.20M $17.2 million $10M–$100M
- $1.30M $1.3 million $1M–$10M
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- court united states district court for the southern district of new york
- organization United States District Court For The Southern District Of New York
- United States District Court for the Southern District of New York entered a preliminary injunction dated November 14, 2006 barring Ian Scott from pursuing litigation in the Federation of St. Kitts and Nevis
- SEC obtains preliminary injunction to protect defrauded investors' funds
- Securities and Exchange Commission announced the entry of a preliminary injunction on November 14, 2006
- Securities and Exchange Commission v. Millennium Financial, Ltd. filed Civil Action No. 02-3901 (LAP) (S.D.N.Y.) on May 22, 2002
- Millennium Financial, Ltd. is defendant in Securities and Exchange Commission v. Millennium Financial, Ltd.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19926 / November 28, 2006 Securities and Exchange Commission v. Millennium Financial, Ltd., Civil Action No. 02-3901 (LAP) (S.D.N.Y.) (filed May 22, 2002) SEC Obtains Preliminary Injunction to Protect Defrauded Investors' Funds The Securities and Exchange Commission announced today that the United States District Court for the Southern District of New York entered a preliminary injunction dated November 14, 2006 barring Ian Scott from pursuing litigation in the Federation of St. Kitts and Nevis. The Commission sought the order, alleging that Scott has been seeking to obtain control over more than $1.3 million in funds fraudulently obtained from investors as part of an international boiler-room scheme formerly operated by Millennium Financial, Ltd. The Commission filed its securities fraud action against Millennium Financial in May 2002. The Court subsequently appointed a receiver for Millennium, entered an asset freeze and, in December 2005, entered final judgment in favor of the Commission. Among other things, the final judgment requires Millennium to disgorge $17.2 million in ill-gotten gains which it received from the hundreds of investors it defrauded. In May 2006, the Court entered an order providing for the submission, processing and resolution of the defrauded investors' claims. The U.S. District Court, in its order granting the preliminary injunction, found that there was sufficient evidence to infer that Scott was attempting, in the name of Millennium, to obtain control of the Millennium account at the Bank of Nevis International in St. Kitts in violation of the District Court's order appointing a receiver. The preliminary injunction bars Scott from prosecuting, maintaining, initiating or participating in legal proceedings to obtain the funds in the Millennium account in any jurisdiction other than the Southern District of New York, and further enjoins Scott from purporting to act for or on behalf of Millennium. For additional information, see Litigation Release No. 17528 (May 22, 2002)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19926 / November 28, 2006 Securities and Exchange Commission v. Millennium Financial, Ltd., Civil Action No. 02-3901 (LAP) (S.D.N.Y.) (filed May 22, 2002) SEC Obtains Preliminary Injunction to Protect Defrauded Investors' Funds The Securities and Exchange Commission announced today that the United States District Court for the Southern District of New York entered a preliminary injunction dated November 14, 2006 barring Ian Scott from pursuing litigation in the Federation of St. Kitts and Nevis. The Commission sought the order, alleging that Scott has been seeking to obtain control over more than $1.3 million in funds fraudulently obtained from investors as part of an international boiler-room scheme formerly operated by Millennium Financial, Ltd. The Commission filed its securities fraud action against Millennium Financial in May 2002. The Court subsequently appointed a receiver for Millennium, entered an asset freeze and, in December 2005, entered final judgment in favor of the Commission. Among other things, the final judgment requires Millennium to disgorge $17.2 million in ill-gotten gains which it received from the hundreds of investors it defrauded. In May 2006, the Court entered an order providing for the submission, processing and resolution of the defrauded investors' claims. The U.S. District Court, in its order granting the preliminary injunction, found that there was sufficient evidence to infer that Scott was attempting, in the name of Millennium, to obtain control of the Millennium account at the Bank of Nevis International in St. Kitts in violation of the District Court's order appointing a receiver. The preliminary injunction bars Scott from prosecuting, maintaining, initiating or participating in legal proceedings to obtain the funds in the Millennium account in any jurisdiction other than the Southern District of New York, and further enjoins Scott from purporting to act for or on behalf of Millennium. For additional information, see Litigation Release No. 17528 (May 22, 2002)