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.alabama.gov
Website: www.asc.state.al.us
FOR IMMEDIATE RELEASE
Carlos
Fernandez from Costa Rica Arrested
for
Alleged Violations of Alabama Securities Act
MONTGOMERY, ALABAMA (December 30, 2004) Honorable Leura Garrett Canary,
US Attorney, Middle District of Alabama and Honorable Joseph P. Borg, Director,
Alabama Securities Commission announced today the arrest of Carlos Fernandez Alfaro,
alias, Carlos Fernandez from Costa Rica for alleged violations of the Alabama
Securities Act. Fernandez was placed in
a Montgomery County detention facility and bond was set at $750,000.
Carlos Fernandez was arrested by Sheriff D. T. Marshall of Montgomery
County, Wednesday afternoon. Fernandez
was in the Montgomery area completing a deposition concerning a related case
filed by the SEC.
Three warrants were issued by Montgomery County District Court for the
arrest of Carlos Fernandez for the offer of securities not registered in the
state of Alabama; for acting as an agent without being registered to sell
securities to investors in the state of Alabama; for engaging in a scheme to obtain investors’ money through a fraudulent
offering of high yield offshore trading programs involving “world trading
banks.” The violation of each associated securities count is considered a Class
C felony, punishable by one year and one day to 10 years in prison, and/or a
fine of up to $10,000.00, or any amount double the pecuniary gain to the
defendant.
Fernandez allegedly participated as an agent with A.R.M. Trust in an off
shore bank debenture Ponzi scheme that defrauded investors across the country
of over one million dollars.
Joseph Borg, Director of the Alabama Securities Commission said, “Our
strong alliance and cooperative efforts with the US Attorney’s Office,
Montgomery County District Attorney’s office, Montgomery County Sheriff’s
Department, FBI, US SEC and other Federal and State agencies will
continue to protect our Alabama investors.”
The investigation of this matter and A.R.M. Trust is ongoing.
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:
- 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.alabama.gov
Website: www.asc.state.al.us
If you
have questions or require more information contact:
Daniel G. Lord
Education and Public Affairs
Manager