Par Three Financial Group, Inc. and Melvin D. Ruth

On August 25, 2005, the SEC obtained a temporary restraining order and asset freeze against Melvin D. Ruth and his company, Par Three Financial Group. The SEC alleged the defendants raised more than $8 million through the fraudulent offer and sale of unregistered securities in the form of promissory notes. According to the SEC, the defendants stated they would use investor monies to fund operations of check cashing stores across the U.S. at rates of interest sufficient for investors to receive returns of 2 to 4% per month. The SEC claimed, however, the defendants used investor monies to pay sales commissions, purported returns, and to make undisclosed and unrelated purchases of real estate, luxury cars, and yachts. For more information about the SEC's action, you can read Litigation Release No. 19348 (Aug. 25, 2005).

The Court appointed Michael Goldberg as Receiver over the operations of Par Three. For the latest information, you can visit the Receiver's website.

http://www.sec.gov/divisions/enforce/claims/parthreefinancial.htm