U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18544 / January 15, 2004

SEC v. JACK CALVIN, ET AL., Civil Action No. 03-10586-MEL (D. Mass.) (U.S. District Court for the District of Massachusetts - Filed March 31, 2003)

SEC OBTAINS DEFAULT JUDGMENTS AGAINST THREE DEFENDANTS CHARGED IN FRAUDULENT INVESTMENT SCHEME

The Securities and Exchange Commission announced today that it obtained default judgments against Dan Wayne Adams of Sandwich, Massachusetts on December 3, 2003, and against Jack Calvin of Ozark, Missouri, and Dr. Charles Timson of Greenlawn, New York on September 9, 2003, permanently enjoining all three defendants from future violations of the federal securities laws. The Court also ordered the defendants to pay disgorgement, prejudgment interest and penalties totaling more than $6 million.

On March 31, 2003, the Commission charged in a complaint that Calvin, Timson and Adams, among others, had raised approximately $2.8 million using misrepresentations typical of "Prime Bank" investment frauds. The defendants falsely stated to investors that their principal would be guaranteed and that funds would be pooled to purchase letters of credit traded by top-rated banks with returns as high as 20% per month. In fact, according to the Commission's complaint, there are no such trading programs and defendants' representations to investors were completely false. In addition, instead of investing the funds he obtained, Calvin used investor money to pay commissions to four defendant salespersons, including Adams and Timson. Calvin also used investor money to make luxury purchases for himself and his daughter, including a house, car, motorcycle, hot tub and furniture, and to pay for his daughter's tuition at cosmetology school.

The defendants failed to appear and respond to the Commission's allegations against them resulting in entry of the default judgments. In addition to finding the defendants liable for securities fraud, the Court ordered Calvin to pay a total of $6,114,283.41, Adams to pay a total of $155,8961.13 and Timson to pay a total of $125,969.25.

Additional information can be found in Litigation Release No. 18056

http://www.sec.gov/litigation/litreleases/lr18544.htm