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 (June 13, 2003) - The Honorable
Randall Houston, District Attorney for the 19th Judicial Circuit,
and Honorable Joseph P. Borg, Director of the Alabama Securities Commission,
announced today that Francis Clark, Sr, formally of Montgomery, Alabama, and who
recently resided in South Carolina, appeared before the Honorable Judge John B.
Bush and was sentenced to 12 years and to pay restitution of $1,603,117.04 for
two counts of Securities Fraud and two counts of Theft of Property I.
Francis, Clark had been free on bond and was
immediately detained to begin his sentence.
Payments of restitution will go to four business entities and four
individuals who were victims.
Houston said, “The cooperation of enforcement
agencies in this area has proven that crime doesn’t pay in Alabama and that we
will seek strict penalties against people who commit white collar crimes.”
Borg said, “The outcome of this case is wide
reaching because victims included important local and international people and
industry. Mr. Clark is proof that
enforcement agencies throughout this great state will work together to punish
people who commit white collar crime against the people.”
Clark was arrested by Deputies of the Elmore County
Sheriff's Office, in Wetumpka on Friday, July 26, 2002. The arrest was a result of a 61 count indictment
returned by the July 2002 Session of the Elmore County Grand Jury. Clark was indicted on 25 counts of Theft of
Property in the 1st degree; 26 counts of Fraud in Connection with
the Sale of Securities; 5 counts of Selling Unregistered Securities; and 5
counts of Selling Securities Without Benefit of Registration as a Securities
Agent. It is alleged that Clark took in
approximately $2.7 million from local and foreign investors and a portion of
the funds was diverted for his personal use.
From September 24, 1996 through August 14, 2000, Francis Clark Sr.
solicited seven (7) domestic investors for $1,407,676.50 and two (2) Japanese
Companies to invest $1,287,553.74 for a total of $2,629,553.
- more -
A review of
the bank records revealed that Clark made numerous withdrawals from the
accounts, categorizing them as expenses, repayment of loans, and investments,
and then utilized these funds for his personal benefit. All the transactions in question involving these
accounts were conducted without the knowledge or consent of the investors, and
in direct violation of the Corporate Operating Agreements. It was determined that Clark thereafter
continued to solicit additional investments and embezzled money from the
company.
The Director of
the Alabama Securities Commission (ASC) cautions potential investors to
thoroughly check out any investment opportunity. Contact ASC 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:
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
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If
you have questions or require more information contact:
Daniel G. Lord
Education and Public Affairs
Manager