NEW YORK | Thu Apr 29, 2010 12: 11 pm EDT
NEW YORK (Reuters)-the Exchange Commission on Friday and said a number of titles won Court freezing of assets of China voice holding Corp., and co-founder of telecommunications company accused of running a Ponzi scheme 8.6 million dollars.
In education, the SEC said China voice, former Chief Executive William Burbank, 52, former Chief Financial Officer David Ronald Allen, 60, and others fraudulently overstated the company's financial status and business activities in China.
"From 2006, at least, China voice, Allen, Burbank and others have made false and misleading public statements about the voice of China, to maintain the facade of a prosperous company, while masking the principals of unjust enrichment, "said the complaint filed in the Court of u.s. District in Dallas.
The Sec said the Ponzi scheme involving false promises made to investors by Allen and two accomplices: Alex Dowlatshahi, 36, and Christopher Mills, 34.
According to the regulator, the men promised investors annual returns of at least 25 percent "minimal risk" for at least 16 investments in limited partnerships.
Instead, the SEC said the money will be used to repay investors in earlier partnerships Fund China voice and other companies, that checks and enrich themselves Allen and members of their families.
The Sec also accused shareholders Gerald Patera, 69, and Ilya Drapkin, 34, helping finance promotions for Allen drive to China's share price, including a campaign of "blast faxes and voice of China dumping million shares on the market.
"This shows that when fraud extremely high yields promise a supposedly low-risk, which is a telltale sign that something might not go well," said Stephen Cohen, an Associate Director of SEC Division of enforcement, in a statement.
The Sec and other regulatory authorities have in recent years spent more resources cracking concerning alleged Ponzi schemes after failing to uncover Bernard Madoff's fraud.
China voice spokesman did not return immediately a call seeking comment. Calls to the homes of Allen and Burbank are not answered. Patera said "I'm shocked" in the lawsuit is pending. Drapkin was not immediately available for comment. Could not be achieved and Dowlatshahi mills.
China voice based in Boca Raton, Florida. More than 20 defendants named in the lawsuit is pending. Many of them have ties to Texas, where the lawsuits was filed.
The lawsuit is pending seeks to impose fines, civil, and bar Allen Burbank Penny Stock quotes from participants or serving as corporate officers and directors, as well as other remedies.
The case is SEC v. Allen et al., U.S. District Court, Northern District of Texas, no. 11-00882.
For the second: Jane Peterson, Carolyn Welshhans, David Herman, Jennifer Leete, Toby Galloway and Stephen Cohen.
(Reporting by Jonathan Stempel)
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