Lawsuit Overview
<p>According to the U.S. Securities and Exchange Commission (“SEC”) on July 28th, 2008, the Honorable Laurie Smith Camp of the United States District Court for the District of Nebraska entered a judgment by consent against Bryan S. Behrens and his company National Investments, Inc. The SEC’s complaint, filed on January 10, 2008, alleged that from at least year 2002, Behrens operated a fraudulent Ponzi-like investment scheme that succeeded in raising at least $6.5 million from investors, some of whom are senior citizens, and that he misappropriated more than $3.5 million of investor funds for his personal use.<br /> Without admitting or denying the allegations in the SEC’s complaint, Behrens and National Investments consented to the entry of a judgment that permanently enjoins them from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Also pursuant to the judgment, Behrens and National Investments are obligated to pay disgorgement with prejudgment interest and a civil penalty in amounts yet to be determined. Further, the court appointed a receiver to locate, preserve and protect all assets that are subject to disgorgement and penalties, and to maximize returns to investors.</p>