SEC v. James M. Louks; and FiberPoP Solutions, Inc., No. LR-23500, District of Minnesota (Mar. 25, 2016) — Press Release
raw: James M. Louks and FiberPoP Solutions, Inc.
James M. Louks and FiberPoP Solutions, Inc., No. LR-23500 (Mar. 25, 2016)
The U
The U.S. Securities and Exchange Commission (SEC) obtained a civil contempt order against James M. Louks and FiberPoP Solutions, Inc. for violating a temporary restraining order by soliciting and accepting $590,000 from investors after being barred from raising funds. The SEC alleged that Louks and FiberPoP defrauded nearly 100 investors through “prime bank scheme” fraud, promising unrealistic returns while misusing investor funds. The court found that the defendants circumvented the restraining order by disguising fund transfers as legal retainers and debt assumptions. As a result, the court ordered the defendants to return all post-restraining-order funds and submit a sworn affidavit confirming compliance. The SEC’s broader litigation and investigation into the fraud remain ongoing.
The U.S. Securities and Exchange Commission (SEC) obtained a civil contempt order against James M. Louks and FiberPoP Solutions, Inc. for violating a temporary restraining order by soliciting and accepting $590,000 from investors after being barred from raising funds. The SEC alleged that Louks and FiberPoP defrauded nearly 100 investors through “prime bank scheme” fraud, promising unrealistic returns while misusing investor funds. The court found that the defendants circumvented the restraining order by disguising fund transfers as legal retainers and debt assumptions. As a result, the court ordered the defendants to return all post-restraining-order funds and submit a sworn affidavit confirming compliance. The SEC’s broader litigation and investigation into the fraud remain ongoing. The U.S. Securities and Exchange Commission (SEC) obtained a civil contempt order against James M. Louks and FiberPoP Solutions, Inc. for violating a temporary restraining order by soliciting and accepting $590,000 from investors after being barred from raising funds. The SEC originally charged them in September 2015 with defrauding nearly 100 investors through a “prime bank scheme,” promising unrealistic returns while misappropriating funds. The defendants accepted a $10,000 retainer and assumed $580,000 in debt on behalf of a FiberPoP investor, directly breaching the court’s injunction. The court ordered them to return all funds received post-restraining order and submit a sworn affidavit confirming compliance. The SEC’s broader investigation and litigation against the defendants remain ongoing.
Extracted insights
- $580K $580,000 $100K–$1M
- $10K $10,000 $10K–$100K
- agency the securities and exchange commission
- The Securities and Exchange Commission announced today that the Honorable Patrick J. Schiltz of the United States District Court for the District of Minnesota has entered an order holding defendants James M. Louks and FiberPoP Solutions, Inc.
- James M. Louks and FiberPoP Solutions, Inc. held in civil contempt by the U.S. District Court for the District of Minnesota on March 25, 2016
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23500 / March 25, 2016 Securities and Exchange Commission v. James M. Louks and FiberPoP Solutions, Inc., Civil Action No. 15-cv-3456 (D. Minn. filed Sept. 1, 2015) Court Holds Defendants James M. Louks and Fiberpop Solutions, Inc. in Civil Contempt The Securities and Exchange Commission announced today that the Honorable Patrick J. Schiltz of the United States District Court for the District of Minnesota has entered an order holding defendants James M. Louks and FiberPoP Solutions, Inc. in civil contempt. In September 2015, the SEC announced fraud charges and an emergency order to halt Louks and FiberPop from continuing to raise money from investors. In its complaint, the SEC alleged that Louks and FiberPoP defrauded nearly 100 investors by promising them massive returns, while actually spending the investors' funds on various schemes, which the SEC alleged typically bore the hallmarks of "prime bank schemes." On September 2, the Court entered, with the defendants' consent, a temporary restraining order barring Louks and FiberPoP from, among other things, soliciting or accepting any monies from actual or prospective investors. In September and October 2015, the defendants entered into two agreements with a FiberPoP investor whereby the investor provided a $10,000 retainer for legal services to be rendered to the defendants and agreed to take on $580,000 in debt that FiberPoP owed to another corporation. On March 23, 2016, the Court issued an order finding that the defendants violated the temporary restraining order by soliciting and accepting these funds. Under the court's order, the defendants must return all monies they have accepted from investors since the Court entered its temporary restraining order, and they must submit a sworn affidavit affirming that they have done so. The SEC's litigation and investigation are continuing. For more information, see Press Release No. 2015-176 (Sept. 2, 2015) and Litigation Release No. 23402 (Nov. 9, 2015). For more information regarding the dangers of prime bank schemes and tips on how to avoid them, see the information on "Prime Bank" Investments on Investor.gov.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23500 / March 25, 2016 Securities and Exchange Commission v. James M. Louks and FiberPoP Solutions, Inc., Civil Action No. 15-cv-3456 (D. Minn. filed Sept. 1, 2015) Court Holds Defendants James M. Louks and Fiberpop Solutions, Inc. in Civil Contempt The Securities and Exchange Commission announced today that the Honorable Patrick J. Schiltz of the United States District Court for the District of Minnesota has entered an order holding defendants James M. Louks and FiberPoP Solutions, Inc. in civil contempt. In September 2015, the SEC announced fraud charges and an emergency order to halt Louks and FiberPop from continuing to raise money from investors. In its complaint, the SEC alleged that Louks and FiberPoP defrauded nearly 100 investors by promising them massive returns, while actually spending the investors' funds on various schemes, which the SEC alleged typically bore the hallmarks of "prime bank schemes." On September 2, the Court entered, with the defendants' consent, a temporary restraining order barring Louks and FiberPoP from, among other things, soliciting or accepting any monies from actual or prospective investors. In September and October 2015, the defendants entered into two agreements with a FiberPoP investor whereby the investor provided a $10,000 retainer for legal services to be rendered to the defendants and agreed to take on $580,000 in debt that FiberPoP owed to another corporation. On March 23, 2016, the Court issued an order finding that the defendants violated the temporary restraining order by soliciting and accepting these funds. Under the court's order, the defendants must return all monies they have accepted from investors since the Court entered its temporary restraining order, and they must submit a sworn affidavit affirming that they have done so. The SEC's litigation and investigation are continuing. For more information, see Press Release No. 2015-176 (Sept. 2, 2015) and Litigation Release No. 23402 (Nov. 9, 2015). For more information regarding the dangers of prime bank schemes and tips on how to avoid them, see the information on "Prime Bank" Investments on Investor.gov.