U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19331 / August 9, 2005

SEC v. Jeffrey L. Gibson and Investment Property Management, LLC, Civil Action No. 1:05-CV-163-RLV (NDGA August 5, 2005)

The Securities and Exchange Commission announced that on August 5, 2005, it filed a complaint in the United States District Court for the Northern District of Georgia, against Jeffrey L. Gibson ("Gibson") and Investment Property Management, LLC ("IPM"). IPM is a limited liability company owned by Gibson.

The Commission's complaint alleges that, from approximately December 2002 through the present, Gibson misappropriated for his personal use approximately $450,000 from investors in American Car Wash Fund, LP ("ACW"), a limited partnership. IPM serves as ACW's general manager. Between December 2002 and April 2003, Gibson, through IPM, sold approximately 43 limited partnership interests in ACW, raising approximately $875,000. Approximately 38 of the limited partners were also clients of his advisory business. Almost as soon as he began selling interests, Gibson began writing checks, payable to cash, on ACW's bank accounts and then misappropriating the funds from those checks for his personal use. In an effort to conceal the misappropriation of funds, Gibson and IPM regularly sent letters to ACW investors describing annualized rates of return, dividends and purchases of various properties. None of those letters disclosed the ongoing misuse of proceeds by Gibson and IPM.

The Commission's complaint charges defendants Gibson and IPM with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Gibson with violations of Section 206 of the Investment Advisers Act of 1933. The complaint seeks to permanently enjoin Gibson and IPM from further violations. The Commission also seeks an accounting by Gibson and IPM, disgorgement of all ill-gotten gains from the illegal conduct with prejudgment interest, civil penalties, and an order expediting discovery and preventing the destruction of documents. On the same day the complaint was filed, the defendants consented to a preliminary injunction, an asset freeze, an accounting and an order expediting discovery.

SEC Complaint in this matter

http://www.sec.gov/litigation/litreleases/lr19331.htm