The Securities and Exchange Commission reports that the U.S. District Court for the Central District of California has entered final judgments against two defendants in a “prime bank” case that targeted investors in the U.S. and Canada.

The defendants were William Kerr and the China Investment Group Ltd., an entity Kerr controlled.

In its complaint, the commission alleged that Kerr and his company induced more than 60 investors throughout the U.S. and Canada to invest over US$12 million in his fraudulent investment program, which Kerr falsely promised would yield exorbitant returns within a matter of weeks or months.

The complaint further alleged that Kerr posed as a wealthy, politically connected businessman and made numerous false and materially misleading representations to his investor victims and to various intermediaries whom he knew would echo his false claims to other investor victims.

Without admitting or denying the allegations of the SEC’s complaint, the defendants consented to the entry of final judgments that permanently enjoin them from violating securities laws. The defendants’ disgorgement obligations were waived, and no civil penalties were imposed against them, based on their financial conditions and, in the case of Kerr, based also on recognition of his $10,757,775 restitution order in a parallel criminal case.

In related proceedings, the SEC issued an administrative order to which Kerr consented, which bars him from associating with any broker or dealer in the future.

http://www.sec.gov/news/digest/dig020904.txt