Friday, November 21, 2008

Missouri Man Sentenced To Prison In $2.8 Million Prime Bank Scam

Jack A. Calvin, 67, of Ozark, Missouri, was sentenced to 16 years in prison yesterday for operating a "prime bank" securities fraud scheme. Calvin was originally indicted in January 2007 on 3 securities fraud counts to which he plead guilty to one count in November 2007. The indictment alleged that he had defrauded at least 115 investors out of more than $2.8 million between 1999 and 2002 by offering for sale securities in an entity called Growth Benefit Systems, a fictitious trading system business. Investors were told that investment funds would be pooled to purchase prime bank instruments that yielded as much as 20 percent returns. In 2003, the SEC took administrative action against Calvin and obtained a default judgment against him in excess of $6 million.

Read the story here.

Read the SEC's litigation release here.

Read the DOJ's announcement here.

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