Securities and Exchange Commission v. Edmund E. Wilson and Walter L. Ross, Civil Action No. 2:13-cv-00188-PWM

SEC CHARGES EDMUND E. WILSON AND WALTER L. ROSS WITH VIOLATIONS OF THE FEDERAL SECURITIES LAWS

Recently, the Securities and Exchange Commission filed a civil injunctive action against Edmund E. Wilson (Wilson) and Walter L. Ross (Ross), alleging that Wilson and Ross violated the federal securities laws in connection with the sale of securities by Fountain Group of Companies of Utah, Inc. (Fountain Group).

In its Complaint, filed in the U.S. District Court for the District of Utah, the Commission alleges that Wilson raised approximately $11 million from at least 60 investors through the fraudulent and unregistered sale of securities in Fountain Group. The Complaint alleges that beginning in September 2005, Wilson, through his company Fountain Group, offered and sold securities for the stated purpose of providing funding for real estate development. Wilson told investors that for a fee of either $80,000 or $150,000, Fountain Group would leverage a bond backed by senior life settlement policies to generate funding in the tens of millions of dollars for each proposed real estate project. Wilson assured investors their fee would be used to pay expenses to “activate” the funding. Instead of using investors’ funds as represented, Wilson transferred investor funds to other entities he owned and controlled where the funds were spent on expenses related to those businesses. In addition, Wilson used investor funds for his own personal purposes. Wilson was assisted in his solicitation of investors by Ross.

The Commission alleges that by engaging in this conduct Wilson and Ross violated Sections 5(a) and 5(c) Securities Act of 1933 (Securities Act) and Section 15(a) of the Securities Exchange Act of 1934 (Exchange Act) and Wilson violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The complaint seeks a permanent injunction as well as disgorgement, prejudgment interest and a civil penalty from Wilson and Ross.

Contact Us:

With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.