SEC Charges Thomas D. Coldicutt, Jr. And Five Others In $6 Million Scheme

Securities and Exchange Commission v. Thomas D. Coldicutt, Jr., et al., 4:12-cv-00505 (E.D. Tex.).  On August 13, 2012, the SEC filed charges against Thomas D. Coldicutt, Jr., Elizabeth L. Coldicutt, Robert C. Weaver, Jr., Christopher C. Greenwood, Linda S. Farrell, and Susana Gomez.  Tom and Elizabeth Coldicutt ran a scheme to create, register, and sell public shell companies while hiding their involvement.  Using nominee officers and directors, the Coldicutts directed the incorporation of 15 purported mining companies (“Coldicutt Companies”).  The Coldicutt Companies did not engage in substantive operations.  After the Coldicutt Companies were incorporated by some of the other Defendants, the Coldicutts provided funds to take the companies public, provided funding for investors to purchase shares, and also directed the nominees to get the companies listed on the OTC Bulletin Board, file periodic and annual reports with the SEC, and sell the Coldicutt Companies.  The Coldicutts obtained nearly $5,000,000 in profits.  The Coldicutts both asserted their Fifth Amendment Privilege during the SEC’s investigation.  In 1992, the Coldicutts were previously enjoined from violating the federal securities laws.

The Defendants are charged with violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  The Defendants are also charged with aiding and abetting violations of Section 15(d) of the Exchange Act and Rules 12b-20, 15d-1, and 15d-13 thereunder.  Finally, the SEC alleges that Farrell, Weaver, Greenwood, and Gomez each aided and abetted violations of Exchange Act Rule 15d-14.  The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil monetary penalties, officer and director bars, and penny stock bars.

This entry was posted in Securities and tagged , , , . Bookmark the permalink.