IN THE UNITED STATES DISTRI FOR THE NORTHERN DISTRICT LUBBOCK DIVISION SECURITIES AND EXCHANGE COMMISSION, Plaintiff, r; ·{"'i' e(l tJ Fr"[ .\ f. ,cn J CLERK, ll.S. mSTmCT C By Dt>puty vs. BENNY L. JUDAH and EXCEL LEASE FUND, INC. Defendants. Civil Action No .. _ COMPLAINT Plaintiff Securities and Exchange Commission ("Commission") alleges as follows against Defendant Benny L. Judah ("Judah") and Defendant Excel Lease Fund, Inc.("Excel") (collectively, "Defendants"), and would respectfully show the Court as follows: SUMMARY 1. From January 2006 through at least March 2009, the Defendants engaged in a fraudulent offering of debenture securities issued by Excel. In offering materials, the Defendants represented that Excel sought to raise $50 million to fund Excel's equipment-leasing business, to fund Excel's "investments," and to retire debentures that Excel had issued earlier. In practice, however, Judah used offering proceeds in a manner grossly inconsistent with those representations. He lost at least $5 million of the offering proceeds "day-trading" securities for Excel's account. He also used investment proceeds to provide related-party loans to himself and to other businesses he controlled. In addition, the Defendants represented to investors, since January 2006, that Excel was operating profitably, when in fact it was not. Finally, the Case 5:09-cv-00087-C Document 1 Filed 04/21/2009 Page 1 of 9
9
Embed
Case 5:09-cv-00087-C Document 1 Filed 04/21/2009 Page 1 of ... · Defendant Benny L. Judah ("Judah") and Defendant Excel Lease Fund, Inc.("Excel") (collectively, "Defendants"), and
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
IN THE UNITED STATES DISTRIFOR THE NORTHERN DISTRICT
Case 5:09-cv-00087-C Document 1 Filed 04/21/2009 Page 8 of 9
JS 44(Rev. 11/04)
CIVIL COVER SHEETThe JS-44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except a~
provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the pUrpOSlof initiating the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)
I.(a) PLAINTIFFS
UNITED STATES SECURITIES AND EXCHANGECOMMISSION
(b) COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF _(EXCEPT IN U.s. PLAINTIFF CASES)
Defendants
BENNY L. JUDAH and EXCEL LEASE FUND, INC.
County of Residence of First Listed efendant:(IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THETRACT OF LAND INVOLVED.
(c) ATTORNEY (FIRM NAME, ADDRESS, AND TELEPHONE NUMBER)
Timothy S. McColeBurnett Plaza, Suite 1900801 Cherry Street, Unit 18Fort Worth, Texas 76102Tele hone: (817) 978-6453
ATIORNEYS (IF KNOWN)
Michael H. Carper1102 Main St.Lubbock, TX 79401Counselfor Defendants
II. BASIS OF JURISDICTION (PLACE AN "X" IN ONE BOX ONLY)
PTF PTF04 04
06 06
(PLACE AN "X" IN ONE BOX FOR PLAINTIFIAND ONE BOX FOR DEFENDANT)
Foreign Nation
Incorporated and Principal Place 0 5 0 5of Business in Another State
Incorporated or Principal Placeof Business In This State
02 02
03 03Citizen or Subject of aForeign Country
III. CITIZENSHIP OF PRINCIPAL PARTIES
(For Diversity Cases Only)
PTF PTF
01 01
Citizen of Another State
Citizen of This State
o 4 Diversity(Indicate Citizenship of Partiesin Item III)
o 3 Federal Question(U.S. Government Not a Party)
o 2 U.S. GovernmentDefendant
181 1 U.S. GovernmentPlaintiff
IV. NATURE OF SUIT (PLACE AN "X" IN ONE BOX ONLY)
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
0 110 Insurance PERSONAL INJURY PERSONAL INJURY 0610 Agriculture o 422 Appeal 28 USC 156 o 400 State Reapportionment0 120 Marine o 310 Airplane o 362 Personal Injury - o 620 Other Food & Drug o 423 Withdrawal o 410 Antitrust0 130 Miller Act 0315 Airplane Product Med. Malpractice o 625 Drug Related Seizure of 28 USC 157 o 430 Banks and Banking0 140 Negotiable Instrument Liability o 365 Personal Injury - Property 21 USC 881 o 450 Commerce0 150 Recovery of Overpayment o 320 Assault, Libel & Product Liability o 630 Liquor Laws o 460 Deportation
& Enforcement of Judgment Slander o 368 Asbestos Personal o 640 RR & Truck o 470 Racketeer Influencedo 151 Medicare Act 0 330 Federal Employers' Injury Product o 650 Airline Regs. and Corrupt Organizationso 152 Recovery of Defaulted Liability Liability o 660 Occupational Safety/Health o 480 Consumer Credit
Student Loans (Exc!. Veterans) 0340 Marine PERSONAL PROPERTY o 690 Other PROPERTY RIGHTS o 810 Selective Serviceo 153 Recovery of Overpayment o 345 Marine Product o 370 Other Fraud 181 850 Securities
of Veteran's Benefits Liability o 371 Truth in Lending Commodities/ Exchimgeo 160 Stockholders' Suits o 350 Motor Vehicle o 380 Other Personal o 820 Copy rights o 875 Customer Challengeo 190 Other Contract o 355 Motor Vehicle Property Damage o 830 Patient 12 USC 3410o 195 Contract Product Liability Product Liability 0840 Trademark o 890 Other Statutory Actionso 196 Franchise o 360 Other Personal o 385 Property Damage LABOR SOCIAL SECURITY o 891 Agricultural Acts
Injury Product Liability o 892 Economic Stabilization Ac0710 FairLabor Standards Act 0861 HIA (1395FF) o 893 Environmental Matterso 720 Labor/Mgmt. Relations o 862 Black Lung (923) o 894 Energy Allocation Acto 730 Labor/Mgmt. Reporting & 0863 DIWC/DIWW (405(g)) 0895 Freedom of
Disclosure Act o 864 SSID Title XVI Information Act
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS 0740 Railway Labor Act o 865 RSI (405(g)) o 900 Appeal of Feeo 790 Other Labor Litigation Determination Under
o 210 Land Condemnation 0441 Voting 0510 Motions to Vacate o 791 Emp!. Ret. Inc. FEDERAL TAX SUITS Equal Access to Justiceo 220 Foreclosure o 442 Employment Sentence Security Act o 950 Constitutionality of
State Statuteso 230 Rent Lease & Ejectment o 443 Housing/ Habeas Corpus: o 870 Taxes (U.S. Plaintiff oro 240 Torts to Land Accommodations o 530 General Defendant)o 245 Tort Product Liability o 444 Welfare o 535 Death Penalty o 871 IRS - Third Partyo 290 All Other Real Property o 440 Other Civil o 540 Mandamus & Other 26 USC 7609
Rights o 550 Civil RiQhts
V.ORIGIN (PLACEAN "X" IN ONE BOXONLY)
1811 OriginalProceeding
o 2 Removed fromState Court
o 3 Remanded fromAppellate Court
o 4 Reinstated orReopened
o 5 Transferred from 0 6 Multidistrictanother district Litigation(Specify)
o 7 Appeal to DistrictJudge from MagistrateJudge
VI. CAUSE OF ACTION CITE THE U.S CIVIL STATUTE UNDER WHICH YOU ARE FILING (DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY):Brief Description of cause:
17(a) of the Securities Act of 1933, [15 U.S.C. §§ 77q(a)]; and Section lO(b) of the Securities Exchange Act of 1934, [15 U.S.C. § 78j(b)], andRule 10b-5 [17 C.F.R. § 240.lOb-5] thereunder.VII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION
COMPLAINT: 0 UNDER F.R.C.P. 23
DEMAND $ CHECK YES only if demanded in complaint:
JURY DEMAND 0 YES 181 NO
VIII. RELATED CASE(S) (See Instructions): U.S. Commodity Futures Trading Commission v. CRW Management LP and Ray M. White,
defendants, Christopher R. White and Hurricane Motorsports, LLC, Relief Defendants
IF ANY JUDGE DOCKET NUMBER
_ MAG. JUDGE _
SIGNATURE OF ATTORNEY OF REO'e'Im"'"
FOR OFFICE USE ONLYReceipt #· AMOUNT APPLYING IFP _
DATE
April 21, 2009
Case 5:09-cv-00087-C Document 1 Filed 04/21/2009 Page 9 of 9