Press Release: SEC Announces Emergency Action to Halt Ongoing Fraud Against Senior Citizens; 2006-143; Aug. 21, 2006
The SEC charged One Wall Street, Inc., its CEO Donte C. Jarvis, and four co-defendants, including Jarvis’s wife La Shondra Hatter, with defrauding at least 64 senior investors out of $1.6 million through false claims about an IPO and a fake E*TRADE merger, diverting funds to personal expenses like gambling and mortgages, prompting emergency asset freezes and demands for disgorgement and civil penalties.
The SEC filed an emergency enforcement action against One Wall Street, Inc., Donte C. Jarvis, Alan Brown, Willis 'Bill' White III, Cecil Baptiste (a/k/a John Latorri), and Jarvis’s wife La Shondra Hatter, alleging they defrauded at least 64 senior investors out of over $1.6 million by falsely claiming an imminent IPO and a nonexistent merger with E*TRADE. Instead of using investor funds for business purposes, Jarvis diverted the money to pay for personal expenses including jewelry, gambling, child care, car loans, and mortgages, while also transferring funds to Hatter, who was named solely as a relief defendant. The SEC sought temporary restraining orders, asset freezes, accountings, civil penalties, and disgorgement of ill-gotten gains to halt the fraud and protect remaining investor assets.
The SEC launched an emergency enforcement action against One Wall Street, Inc., its CEO Donte C. Jarvis, and four co-defendants—Alan Brown, Willis 'Bill' White III, Cecil Baptiste (a/k/a John Latorri), and Jarvis’s wife La Shondra Hatter—for orchestrating a fraudulent stock offering that netted over $1.6 million from at least 64 investors, the majority of whom were senior citizens. The defendants misled investors with false claims that One Wall Street was preparing for an initial public offering and negotiating a merger with E*TRADE Financial Corporation, neither of which was true. In reality, Jarvis used the investor funds to finance personal luxuries such as jewelry, gambling, adult entertainment services, child care, car loans, and mortgage payments, while also funneling money to his wife, who was named as a relief defendant solely to recover misappropriated assets. The SEC’s complaint emphasized that no legitimate business use of the funds occurred, and the company never pursued an IPO or engaged in any business discussions with E*TRADE. To prevent further dissipation of assets, the SEC requested immediate temporary restraining orders, asset freezes, and a full accounting of all funds and property held by the defendants. The agency also sought final judgments imposing civil penalties and ordering full disgorgement of all ill-gotten gains. This case came just weeks after the SEC’s first-ever Seniors Summit, underscoring its intensified focus on protecting elderly Americans from investment fraud and reinforcing its commitment to aggressive enforcement in such cases.
Extracted insights
- $1.60M $1.6 million $1M–$10M
- person alan brown
- person asset freezes
- person cecil baptiste
- person civil penalties
- person donte c. jarvis
- person emergency enforcement action
- person fraudulent solicitations
- person investor funds
- person la shondra hatter
- company one wall street, inc.
- agency Securities and Exchange Commission
- person seniors summit
- person temporary restraining orders
- Securities And Exchange Commission filed emergency enforcement action
- Defendants obtained $1.6 million
- Securities And Exchange Commission charged One Wall Street, Inc.
- Securities And Exchange Commission charged Donte C. Jarvis
- Securities And Exchange Commission charged Alan Brown
- Securities And Exchange Commission charged Willis "Bill" White III
- Securities And Exchange Commission charged Cecil Baptiste
- Securities And Exchange Commission charged La Shondra Hatter
- Defendants made fraudulent solicitations
- Defendants misappropriated investor funds
- Securities And Exchange Commission seeks temporary restraining orders
- Securities And Exchange Commission seeks asset freezes
- Securities And Exchange Commission seeks accountings
- Defendants raised $1.6 million
- Defendants made false and misleading statements
- Donte C. Jarvis used investor funds
- Securities And Exchange Commission seeks civil penalties
- Securities And Exchange Commission seeks disgorgement of ill-gotten gains
- Securities And Exchange Commission held Seniors Summit
SEC Announces Emergency Action to Halt Ongoing Fraud Against Senior Citizens SEC Seeks Temporary Restraining Orders, Asset Freezes and Accountings FOR IMMEDIATE RELEASE 2006-143 Washington, D.C., Aug. 21, 2006 - The Securities and Exchange Commission today filed an emergency enforcement action to halt an ongoing fraudulent offering of stock in a company called One Wall Street, Inc. in which the defendants have obtained over $1.6 million from at least 64 investors, most of them senior citizens. The SEC's complaint, filed in the Eastern District of New York in Brooklyn, charges defendants One Wall Street, Inc., Donte C. Jarvis, Alan Brown, Willis "Bill" White III, and Cecil Baptiste a/k/a John Latorri with making fraudulent solicitations and misappropriating investor funds. The Commission also charged Jarvis' wife, La Shondra Hatter, as a defendant solely to recover investor funds in her possession. In its emergency enforcement action, the Commission seeks temporary restraining orders against further violations of the federal securities laws, asset freezes, and accountings. Mark K. Schonfeld, Director of the Commission's Northeast Regional Office, stated, "This case emphasizes our continuing commitment to protecting elderly investors. Here, we are seeking emergency relief to halt the fraud and preserve investors' funds." The complaint alleges that from March 2003 until the present, the defendants raised at least $1.6 million from at least 64 investors — mostly senior citizens — who purchased unregistered One Wall Street stock. The complaint further alleges that to induce these sales, defendants made numerous oral and written false and misleading statements, including that One Wall Street would soon conduct an initial public offering, that E*TRADE Financial Corporation was negotiating to merge with One Wall Street, and that One Wall Street would use the investment proceeds for solely business purposes. In fact, according to the complaint, defendants have not pursued an IPO of One Wall Street, E*Trade has never engaged in any business discussions with One Wall Street whatsoever, nor did One Wall Street use investor proceeds in the manner the defendants represented. Rather than apply the proceeds collected from the investors towards legitimate business expenses, the complaint alleges that Jarvis used, and continues to use, investor funds to pay his personal expenses, including jewelry purchases, gambling and "adult entertainment" services, and payments for child day care, car loans and mortgages. He has also given investor funds to his wife and fellow defendants. In its emergency enforcement action, the Commission seeks temporary restraining orders freezing the defendants' and relief defendant's assets and prohibiting the defendants from committing further violations of the federal securities laws. The Commission's complaint also seeks a final judgment assessing civil penalties against the defendants and ordering the defendants and relief defendant to disgorge their ill-gotten gains. Last month, the SEC held its first-ever Seniors Summit, where the SEC joined with state regulators and others to examine how to best protect older Americans from investment fraud. A webcast of the July 17, 2006, event is available at http://www.sec.gov/news/otherwebcasts.shtml. Materials related to the Senior Summit are located at: http://www.sec.gov/spotlight/seniors/seniors_summit.htm. # # # Contacts: Helene Glotzer, Associate Regional Director, 212-336-0078 Gerald Gross, Assistant Regional Director, 212-336-0085 Scott L. Black, Senior Trial Counsel, 212-336-0029 Additional materials: Litigation Release 19809 and Complaint http://www.sec.gov/news/press/2006/2006-143.htm Home | Previous Page Modified: 08/21/2006
SEC Announces Emergency Action to Halt Ongoing Fraud Against Senior Citizens SEC Seeks Temporary Restraining Orders, Asset Freezes and Accountings FOR IMMEDIATE RELEASE 2006-143 Washington, D.C., Aug. 21, 2006 - The Securities and Exchange Commission today filed an emergency enforcement action to halt an ongoing fraudulent offering of stock in a company called One Wall Street, Inc. in which the defendants have obtained over $1.6 million from at least 64 investors, most of them senior citizens. The SEC's complaint, filed in the Eastern District of New York in Brooklyn, charges defendants One Wall Street, Inc., Donte C. Jarvis, Alan Brown, Willis "Bill" White III, and Cecil Baptiste a/k/a John Latorri with making fraudulent solicitations and misappropriating investor funds. The Commission also charged Jarvis' wife, La Shondra Hatter, as a defendant solely to recover investor funds in her possession. In its emergency enforcement action, the Commission seeks temporary restraining orders against further violations of the federal securities laws, asset freezes, and accountings. Mark K. Schonfeld, Director of the Commission's Northeast Regional Office, stated, "This case emphasizes our continuing commitment to protecting elderly investors. Here, we are seeking emergency relief to halt the fraud and preserve investors' funds." The complaint alleges that from March 2003 until the present, the defendants raised at least $1.6 million from at least 64 investors — mostly senior citizens — who purchased unregistered One Wall Street stock. The complaint further alleges that to induce these sales, defendants made numerous oral and written false and misleading statements, including that One Wall Street would soon conduct an initial public offering, that E*TRADE Financial Corporation was negotiating to merge with One Wall Street, and that One Wall Street would use the investment proceeds for solely business purposes. In fact, according to the complaint, defendants have not pursued an IPO of One Wall Street, E*Trade has never engaged in any business discussions with One Wall Street whatsoever, nor did One Wall Street use investor proceeds in the manner the defendants represented. Rather than apply the proceeds collected from the investors towards legitimate business expenses, the complaint alleges that Jarvis used, and continues to use, investor funds to pay his personal expenses, including jewelry purchases, gambling and "adult entertainment" services, and payments for child day care, car loans and mortgages. He has also given investor funds to his wife and fellow defendants. In its emergency enforcement action, the Commission seeks temporary restraining orders freezing the defendants' and relief defendant's assets and prohibiting the defendants from committing further violations of the federal securities laws. The Commission's complaint also seeks a final judgment assessing civil penalties against the defendants and ordering the defendants and relief defendant to disgorge their ill-gotten gains. Last month, the SEC held its first-ever Seniors Summit, where the SEC joined with state regulators and others to examine how to best protect older Americans from investment fraud. A webcast of the July 17, 2006, event is available at http://www.sec.gov/news/otherwebcasts.shtml. Materials related to the Senior Summit are located at: http://www.sec.gov/spotlight/seniors/seniors_summit.htm. # # # Contacts: Helene Glotzer, Associate Regional Director, 212-336-0078 Gerald Gross, Assistant Regional Director, 212-336-0085 Scott L. Black, Senior Trial Counsel, 212-336-0029 Additional materials: Litigation Release 19809 and Complaint http://www.sec.gov/news/press/2006/2006-143.htm Home | Previous Page Modified: 08/21/2006