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SEC finally files action against Pacific Asian Atlantic Foundation
Anonymous
Posted: Saturday, August 13, 2011

Posted: 2/23/2010 8:40:21 AM

By: knightmare3000

this is quite a relief. I placed a message on www.ezboard.com a few years ago and got hundreds of email inquires about them. one was from the NEW MEXICO STATE POLICE. other notables included a person who said they were " WILLIAM MACY" either the movie actor or the scion of the Macy department store clan. so I guess there were many taken in by this outfit.


Internal Administrator
Posted: Saturday, August 13, 2011
Joined: 10/12/2010
Posts: 5780


Posted: 2/22/2010 6:43:39 AM

By: Hunter

This a group that was mentioned many times at the old Diligizer board.

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21417 / February 19, 2010
Securities and Exchange Commission v. Pacific Asian Atlantic Foundation and Samuel M. Natt, CV 10-1214 GHK (RCx).
SEC Files Settled Charges Against Purported International Humanitarian Organization and Its CEO For Offering Billions in Fraudulent Bonds

The Securities and Exchange Commission today filed fraud charges against a purported international humanitarian organization and its president and chief executive officer for fraudulently offering billions in worthless bonds to several U.S broker-dealers.

The SEC's complaint, filed in the United States District Court for the Central District of California, charges Samuel M. Natt, 54, of Palos Verdes Estates, Calif., and his Palos Verdes Estates, Calif.-based company, Pacific Asian Atlantic Foundation ("PAAF"), for offering billions in fraudulent PAAF bonds from late 2006 through 2009. The complaint alleges that the defendants created the false impression that the bonds were genuine debt securities by drafting and disseminating fraudulent offering memoranda that misrepresented, among other things, PAAF's assets and financial condition, its ability and intent to pay the principal and interest on the bonds, the riskiness of the offering, and PAAF's intended use of the bond proceeds. The complaint further alleges that Natt and PAAF attempted to legitimize the bonds by obtaining corporate bond identification numbers from the CUSIP Service Bureau based upon PAAF's misleading offering memoranda. According to the complaint, the defendants took these actions to ensure that registered broker-dealers and other financial institutions would accept the worthless bonds and deposit them into accounts held by PAAF.

The complaint further alleges that Natt made four separate attempts to deposit the bonds at various registered broker-dealers. Once deposited into a PAAF brokerage account, Natt intended that the bonds either be used as collateral for loans or sold into the market. To induce these broker-dealers to accept the bonds for deposit into PAAF's account, the complaint alleges that Natt falsely claimed that the bonds were valid debt securities issued by PAAF in a private placement offering. The complaint alleges that Natt sent several of the broker-dealers PAAF's misleading bond offering memoranda, which included PAAF's false financial statements claiming assets of $5.3 billion, and the CUSIP Service Bureau information. When Natt's efforts at the broker-dealers failed, Natt caused PAAF to issue bonds with a total purported face value of $97 billion to various third parties. The SEC alleges that Natt instructed those parties, who acted as middle-men on behalf of PAAF, to offer the bonds to financial institutions to obtain lines of credit or sell the bonds into the market. Natt promised to split any returns obtained from the bonds up to 50% between the third parties and PAAF. According to the complaint, no known broker-dealer or financial institution has accepted the PAAF bonds for deposit.

Natt and PAAF have agreed to settle this case without admitting or denying the allegations in the complaint. Natt and PAAF consented to a permanent injunction from further violations of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933. In addition to the permanent injunction, Natt consented to pay a $50,000 civil penalty.

Link to Complaint
http://www.sec.gov/litigation/complaints/2010/comp21417.pdf


 

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