2004-01-14 sec-litreleases litigation_release 65 KB 3,009 chars

SEC v. Jordan Enterprises LLC; Jordan Holdings LLC; Leon Jordan II; Raymond J. Brown; Ray Brown & Associates; and Sheila S. Jordan, No. LR-18583, Central District of California (Jan. 14, 2004) — Press Release

raw: Jordan Enterprises LLC, et al.

Jordan Enterprises LLC, et al., No. LR-18583 (Jan. 14, 2004)

Caption: SEC v. Jordan Enterprises LLC, et al.

summary

Leon Jordan II, Jordan Enterprises, Jordan Holdings, Raymond J. Brown, and associates defrauded investors of at least $850,000 by falsely promising access to non-existent bond offerings in exchange for 'due diligence' fees, resulting in court-ordered disgorgement, civil penalties, and permanent bars from the securities industry.

paragraph

In January 2004, U.S. District Judge Percy Anderson entered final judgments against Leon Jordan II, Jordan Enterprises, Jordan Holdings, Raymond J. Brown, and Ray Brown & Associates for orchestrating an advance fee securities fraud scheme that raised at least $850,000 by falsely claiming to facilitate participation in non-existent multi-billion-dollar bond offerings. The defendants misrepresented their affiliation with major financial institutions and promised refundable 'due diligence' fees, which were never returned; the court ordered the Jordan defendants to disgorge $900,000 and pay $30,329.30 in prejudgment interest, with relief defendant Sheila S. Jordan liable for $390,000 and $13,142.70 respectively, while Brown paid $75,000 in disgorgement and $2,611.69 in interest. Civil penalties of $125,000 against Jordan and $25,000 against Brown were imposed, and both were permanently barred from association with any broker-dealer.

narrative

From December 2001, Leon Jordan II, Jordan Enterprises, Jordan Holdings, Raymond J. Brown, and Ray Brown & Associates operated an advance fee securities fraud scheme by falsely representing themselves as exclusive intermediaries for non-existent multi-billion-dollar bond offerings tied to major financial institutions. They solicited at least $850,000 from investors by charging 'due diligence' fees with promises that the fees would be refunded if the participants failed to receive bond proceeds—none of which ever materialized, and the purported financial institutions denied any involvement. On January 14, 2004, U.S. District Judge Percy Anderson entered final judgments against the defendants, who consented without admitting or denying guilt. The Jordan defendants were ordered to disgorge $900,000 and pay $30,329.30 in prejudgment interest, with reductions of $75,000 and $2,611.69 respectively applied for Brown’s payments; relief defendant Sheila S. Jordan was separately ordered to pay $390,000 in disgorgement and $13,142.70 in interest. As partial payment, real property and frozen bank funds were seized and transferred to the court. Leon Jordan was fined a $125,000 civil penalty, Brown a $25,000 penalty, and both were permanently barred from association with any broker or dealer under separate administrative orders.

Enriched metadata

Scheme: advance-fee (100%)
Court: Central District of California
Outcome: settled
Disgorgement: $900,000
Civil penalty: $125,000
Entity: Jordan Enterprises LLC
CIK: 0000839484

Classified advance-fee(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Dollar amounts 9

$900K $900,000 $100K–$1M
$850K $850,000 $100K–$1M
$390K $390,000 $100K–$1M
$125K $125,000 $100K–$1M
$75K $75,000 $10K–$100K
$30K $30,329 $10K–$100K
$25K $25,000 $10K–$100K
$13K $13,142 $10K–$100K
$3K $2,611 <$10K

Entities 3

person Defendant
person final judgments
person Percy Anderson

Triples 10

Percy Anderson entered Final Judgments in an "advance fee" securities fraud case against defendants Leon Jordan II, Jordan Enterprises, LLC, Jordan Holdings, LLC, Raymond J. Brown, and Ray Brown & Associates
Final Judgments restrain the defendants from further violations of the anti-fraud and broker-dealer registration provisions of the federal securities laws
Final Judgments enjoin the defendants from further violations of the anti-fraud and broker-dealer registration provisions of the federal securities laws
Percy Anderson is U.S. District Judge for the Central District of California
Leon Jordan II is defendant
Jordan Enterprises, LLC is defendant
Jordan Holdings, LLC is defendant
Raymond J. Brown is defendant
Ray Brown & Associates is defendant
Final Judgments were entered on January 14, 2004

View original SEC litigation releasesec.gov

Extracted body text (3,009c)

On January 14, 2004, the Honorable Percy Anderson, U.S. District Judge for the Central District of California, entered Final Judgments in an "advance fee" securities fraud case against defendants Leon Jordan II, Jordan Enterprises, LLC, Jordan Holdings, LLC (collectively the "Jordan defendants"), Raymond J. Brown ("Brown"), and Ray Brown & Associates. The Final Judgments restrain and enjoin the defendants from further violations of the anti-fraud and broker-dealer registration provisions of the federal securities laws (Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 15(a)(1) of the Securities Exchange Act of 1934 ("Exchange Act")). The defendants consented to the entry of the judgments without admitting or denying any of the allegations of the Commission's complaint. The court's order holds the Jordan defendants jointly and severally liable for disgorgement and prejudgment interest in the amounts of $900,000 and $30,329.30, respectively (to be reduced by $75,000 in disgorgement and $2,611.69 in prejudgment interest ordered to be paid by defendant Brown), and of those amounts, orders relief defendant Sheila S. Jordan to pay disgorgement and prejudgment interest of $390,000 and $13,142.70, respectively. As partial payment of their financial obligations, the court also ordered the Jordan defendants and relief defendant Sheila S. Jordan to transfer certain real property and previously frozen funds in a bank account to the clerk of the court within 30 days, and ordered defendant Leon Jordan to pay a civil penalty in the amount of $125,000. The court also ordered Brown to pay a civil penalty in the amount of $25,000. In separate administrative proceedings, Brown and Jordan also consented to orders permanently barring them from association with any broker or dealer. The Commission's complaint alleged that since December 2001, the defendants fraudulently raised at least $850,000 by offering unwitting individuals and entities seeking venture capital (the "participants") the opportunity, for a fee, to receive proceeds from bond offerings that did not exist. According to the complaint, the defendants falsely represented to participants that: (1) they were the exclusive coordinators and intermediaries of several multi-billion dollar bond offerings in which well known large financial institutions were involved; (2) in exchange for a fee (denominated as a "due diligence" fee), the defendants would assist the participants in obtaining the proceeds of a specific bond offering; and (3) the participants' fees would be refunded if the defendants were unable to secure participation in the proceeds of the bond offering for the participants. The complaint alleged that the well-known financial institutions purportedly involved in the defendants' bond offerings disclaimed any involvement in any bond offering with the defendants, and that there was no evidence that any of the bond offerings actually existed. See also: Lit R. No. 17925 / January 13, 2003

OCR text (3,009c · plain-text · 99% conf)