UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16533 \ May 1, 2000

Securities and Exchange Commission v. Eugene J. Yelverton, Jr., Civil Action No. 3:00-CV-324LN (SDMS April 24, 2000)

On April 24, 2000, the Securities and Exchange Commission filed a complaint in the United States District Court for the Southern District of Mississippi against defendant Eugene J. Yelverton, Jr. ("Yelverton") to compel his payment of 27,000 in disgorgement.

On March 31, 1999, the Commission issued an order instituting public proceedings pursuant to Section 8A of the Securities Act of 1933 ("Securities Act"), and Sections 15(b), 19(h) and 21C of the Exchange Act in the administrative proceeding In the Matter of Eugene J. Yelverton, Jr., Administrative Proceeding File No. 3-9859. The Commission's order found that Yelverton, a consultant, subsequent shareholder, and municipal securities principal of Thorn, Welch & Co., Inc., violated the antifraud provisions of the federal securities laws in connection with numerous offerings of urban renewal revenue notes. Yelverton was ordered to pay disgorgement in the amount of $877,350, but due to a demonstrated inability to pay, all but $30,000 of that amount was waived. Yelverton consented to the issuance of the- order. Yelverton has failed to pay $27,000 of the disgorgement.

The complaint seeks to have an order issued pursuant to Section 21(e) of the Exchange Act, requiring Yelverton to comply with the Commission's order by paying the $27,000 disgorgement, plus prejudgment interest.

http://www.sec.gov/litigation/litreleases/lr16533.htm