Enterprise Trust Company, et al.

On March 3, 2008, the SEC obtained a temporary restraining order against Enterprise Trust Company, its President, John H. Lohmeier, and its Vice President, Rebecca Townsend, along with an asset freeze against Enterprise and Lohmeier. According to the complaint, the defendants fraudulently induced hundreds of customers of Advisory Financial Consultants, a registered broker-dealer, to transfer custody of approximately $49 million in mutual funds to Enterprise.

The SEC also alleged the defendants, without the customers’ knowledge or consent, placed their mutual funds into margin and other accounts so they could be used as collateral for leveraged margin trading. The SEC’s complaint alleges the trading by the defendants was intended to benefit only themselves and resulted in the defendants having to sell more than $8 million of the mutual funds to cover a margin debt.

For more information about the SEC’s action, you can read Litigation Release No. 20482 (Mar. 7, 2008).

The Court also appointed Philip Stern as Receiver. For more information about the Receivership, you can visit the Receiver’s website.