AP Wire | 08/26/2005 | SEC seeks to freeze assets of firm with Nevada, Florida offices
SEC seeks to freeze assets of firm with Nevada, Florida offices
LAS VEGAS - Federal securities regulators are asking a court to freeze the assets of a financial services company with offices in Florida and Nevada, alleging executives have been running a pyramid scheme to defraud investors.
A complaint filed this week in U.S. District Court in Miami accuses Melvin D. Ruth, 64, and Par Three Financial Inc. of issuing at least $8 million worth of notes to more than 120 investors nationwide.
The Federal Securities and Exchange Commission complaint, filed Tuesday, cited fraud and violations of federal and securities laws in what it described as a "Ponzi scheme." It also asks the court to issue a temporary restraining order to stop the company from operating, appoint a receiver, prohibit the destruction of documents and begin an accounting of company assets.
The SEC filing said the complaint was filed in Florida because, while Par Three is a Nevada corporation purportedly headquartered in Las Vegas, it's principal office is in Boca Raton.
A recorded message at the company's Las Vegas office tells callers the company is experiencing "a temporary problem with our liquid funds" and promises to repay investors in full.
Par Three executives did not respond to telephone messages seeking comment.
Par Three's Web site has asserted that the company makes loans, but as "notes" that are collected within nine months, meaning the company isn't selling regulated securities.
In a year-end newsletter, company Vice President J.W. Long tells investors that revenue gains neared 35 percent in 2004 and are projected to top 40 percent this year.
The SEC complaint alleges the company promises investors a return of 2 percent per month, or 24 percent per year, on investments in Cash Plus Financial Inc. payday loan and check-cashing companies in southern Florida.
AP Wire | 08/26/2005 | SEC seeks to freeze assets of firm with Nevada, Florida offices
LAS VEGAS - Federal securities regulators are asking a court to freeze the assets of a financial services company with offices in Florida and Nevada, alleging executives have been running a pyramid scheme to defraud investors.
A complaint filed this week in U.S. District Court in Miami accuses Melvin D. Ruth, 64, and Par Three Financial Inc. of issuing at least $8 million worth of notes to more than 120 investors nationwide.
The Federal Securities and Exchange Commission complaint, filed Tuesday, cited fraud and violations of federal and securities laws in what it described as a "Ponzi scheme." It also asks the court to issue a temporary restraining order to stop the company from operating, appoint a receiver, prohibit the destruction of documents and begin an accounting of company assets.
The SEC filing said the complaint was filed in Florida because, while Par Three is a Nevada corporation purportedly headquartered in Las Vegas, it's principal office is in Boca Raton.
A recorded message at the company's Las Vegas office tells callers the company is experiencing "a temporary problem with our liquid funds" and promises to repay investors in full.
Par Three executives did not respond to telephone messages seeking comment.
Par Three's Web site has asserted that the company makes loans, but as "notes" that are collected within nine months, meaning the company isn't selling regulated securities.
In a year-end newsletter, company Vice President J.W. Long tells investors that revenue gains neared 35 percent in 2004 and are projected to top 40 percent this year.
The SEC complaint alleges the company promises investors a return of 2 percent per month, or 24 percent per year, on investments in Cash Plus Financial Inc. payday loan and check-cashing companies in southern Florida.
AP Wire | 08/26/2005 | SEC seeks to freeze assets of firm with Nevada, Florida offices
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