ALABAMA
SECURITIES COMMISSION
770 WASHINGTON AVE, SUITE 570
MONTGOMERY, ALABAMA 36130-4700
Telephone: (334) 242-2984 or 1-800-222-1253. Fax: (334)
242-0240
Email: asc@asc.state.al.us. Website:
www.asc.state.al.us
FOR
IMMEDIATE RELEASE
MONTGOMERY,
ALABAMA (October 20, 2003) - The Honorable Gary Alverson, District Attorney,
31st Judicial Circuit, Colbert County and the Honorable Joseph P. Borg,
Director, Alabama Securities Commission announced that Kenneth and Donna Brown
of Kentucky entered a plea of guilty for the sale of unregistered securities in
Alabama, before the Honorable Judge Jacqueline Hatcher on October 14, 2003. The Browns face up to 4 years each for their
participation in an offshore investment program. A hearing for the defendant’s request for probation will be
scheduled in the near future.
The Bryan County
Sheriff's Office in Oklahoma arrested the Browns and notification was received
on February 18, 2003.
The Alabama Securities Commission opened an
investigation of Memlock Systems based on a complaint from a resident, of Muscle Shoals, Alabama. Kenneth and
Donna Brown, the owners of a company called
Memlock Systems, induced several Alabama residents to invest a total of
$150,000. The Browns represented that the investment consisted of the purchase
of discounted US Treasury Bills and mutual funds. The Brown's company, Memlock
Systems was an offshore international business corporation located in the Turks
and Caicos Islands. The investment funds from the Alabama residents and several
other investors outside of Alabama were wire transferred to the Memlock Systems
bank account located offshore. None of the Alabama investors in the program
received any returns as represented.
A review of the Commission registration files
disclosed no record of the registration or exemption of any securities issued
by Kenneth and Donna Brown or Memlock Systems in the State of Alabama. The
Commission presented the facts to the Colbert County Grand Jury and Kenneth and
Donna Brown were indicted, on 2 counts Sale of an Unregistered Security, 2
counts Sale of a Security by an Unregistered Agent, and 2 counts of Securities
Fraud, all of which are
felony counts.
Potential
investors can contact the Alabama Securities Commission for inquiries regarding
securities broker-dealers, agents, investment advisors, investment advisor
representatives, financial planners, the registration status of securities, to
report suspected fraud, or obtain consumer information:
-
more -
ALABAMA
SECURITIES COMMISSION
770 WASHINGTON AVE, SUITE 570
MONTGOMERY, ALABAMA 36130-4700
Telephone: (334) 242-2984 or 1-800-222-1253. Fax: (334)
242-0240
Email: asc@asc.state.al.us. Website:
www.asc.state.al.us
###
If you have questions or
require more information contact:
Daniel G. Lord
Education and Public Affairs Manager