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SEC Announces 100% Return of Funds to Defrauded CNDD and AHFI investors

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  • Steve Kirsch
    SEC Announces 100% Return of Funds to Defrauded Concorde America and Absolute Health Investors Washington, D.C., April 14, 2009 (LAWFUEL) – Investors who
    Message 1 of 1 , Apr 14 10:49 PM
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      SEC Announces 100% Return of Funds to Defrauded Concorde America and
      Absolute Health Investors

      Washington, D.C., April 14, 2009 (LAWFUEL) – Investors who were
      defrauded by schemes involving Concorde America, Inc. and Absolute
      Health and Fitness, Inc. will be receiving all of their money back due
      to the efforts of the Securities and Exchange Commission.

      The checks, which will be distributed beginning as early as April 15,
      will total nearly $3.5 million and go to 1,355 investors who were
      harmed by the fraudulent promotion of the stock of the two companies.

      In February 2005, the Commission sued the two companies and several
      individuals in U.S. District Court in Miami in connection with related
      pump-and-dump schemes. At the time, the Commission obtained emergency
      restraining orders to freeze the defendants' assets.

      In addition to the funds that the Commission obtained as a result of
      the asset freeze, the Fair Fund distribution includes subsequent
      disgorgement and civil money penalties paid by some of the
      defendants. Proceeds of fraudulent trading by some of the parties were
      traced to accounts in a bank in the Netherlands Antilles and
      repatriated.

      "We have been able to return all of the investors' losses because our
      emergency actions allowed us to quickly freeze assets and trace the
      funds to offshore accounts," said David Nelson, Director of the SEC's
      Miami Regional Office.

      "The SEC is committed to pursuing wrongdoers and returning lost funds
      to harmed investors to the greatest extent possible," said Dick
      D'Anna, Director of the SEC's Office of Collections and Distributions.

      In the Fair Funds provisions of the Sarbanes-Oxley Act of 2002,
      Congress gave the SEC increased authority to distribute ill-gotten
      gains and civil money penalties to harmed investors. To date, the
      Commission has returned more than $4 billion to investors through Fair
      Fund distributions.

      In the SEC's enforcement action against Concorde America and Absolute
      Health and Fitness, the Commission obtained permanent injunctions by
      consent, default, or summary judgment against all of the defendants,
      including both companies. The Commission also obtained final judgments
      of disgorgement, prejudgment interest, and civil penalties against
      some of the defendants, and continues to pursue final judgments
      against Concorde America and its president.

      The investors receiving distributions today bought Concorde America
      and Absolute Health stock during fraudulent touting periods from June
      to December 2004.

      Questions regarding the Fair Fund distribution may be directed to the
      court-appointed distribution agent, Melanie E. Damian, Esq. by:

      Visiting the Fair Fund's Web site at
      http://www.concordeabsolutehealthfund.com Calling toll-free
      1-877-523-6365 Writing to Melanie E. Damian, Esq. at either Damian &
      Valori LLP, 1000 Brickell Avenue, Suite 1020, Miami, FL 33131 or c/o
      Global Risk Solutio ns, Inc., P.O. Box 310130, Miami, FL 33231.
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