U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21695 / October 15, 2010
SEC v. Jason K. Fifield, Civil Action No. cv 10-7709 RGK(OPx) (C.D. Ca.)
SEC Charges Jason K. Fifield with Fraud in Connection with a $5.88 million Ponzi Scheme
The United States Securities and Exchange Commission (Commission) yesterday filed a civil injunctive action charging Jason K. Fifield, a resident of Temecula, California, with violations of the antifraud provisions of the federal securities laws. Specifically, the Commission’s complaint alleges that Fifield, using JJF Management Company, Inc., raised approximately $5.88 million through the sale of unsecured promissory notes issued to more than 70 investors. The complaint alleges Fifield promised to pay JJF Management’s investors interest at a rate of 7.5% per month, or 90% per year. The complaint also alleges that Fifield, through offering memoranda, made misrepresentations to investors about how investor funds would be used, and that Fifield misused investor funds by recklessly placing investor funds in “investments” inconsistent with the representations in the offering documents, by making Ponzi-like payments, and by making unauthorized, and exorbitant, payments to himself and to benefit himself and his relatives.
Finally, the complaint charges Fifield with violations of the broker-dealer registration requirements of the federal securities laws and alleges Fifield sold securities without being registered with a registered broker or dealer.
The complaint alleges Fifield violated Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks the entry of a permanent injunction, disgorgement plus prejudgment interest and post-judgment interest, and civil money penalties.