They are still going after Young.
U.S. SECURITIES AND EXHANGE COMMISSION
Litigation Release No. 21908 / March 30, 2011
SEC v. Navigators International Management Co., Ltd., James R. Spurger and Benjamin W. Young, Jr., Case No.07-cv-04518 (S.D. Texas)
COURT ENTERS FINAL JUDGMENTS BY CONSENT AGAINST TWO DEFENDANTS IN FRAUDULENT BOND FUNDING SCHEME.
The Securities and Exchange Commission announced today that on March 28, 2011, the Honorable Nancy F. Atlas of the United States District Court for the Southern District of Texas entered two final judgments in a civil action involving Navigators International Management Co., Ltd., a Bahamian corporation. Navigators, without admitting or denying the Commission's allegations, consented to entry of a Final Judgment that (i) enjoins it from violating Sections 5 and 17(a) of the Securities Act of 1933 (Securities Act), and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and (ii) finds the corporation liable for payment of $45,000 under Securities Act Section 20(d) and Exchange Act Section 21(d)(3). James R. Spurger, the company's former president, without admitting or denying the Commission's allegations, consented to entry of a Final Judgment that (i) enjoins him from violating Securities Act Sections 5 and 17(a), and Exchange Act Sections 10(b) and 15(a), and Rule 10b-5 thereunder, and (ii) finds him liable for payment of $25,000 under Securities Act Section 20(d) and Exchange Act Section 21(d)(3).
According to the Commission's complaint, Navigators, its officers, and persons acting on their behalf, solicited investors to participate in an unregistered and fraudulent bond funding program. Investors were promised returns of 67% or more and were assured that their principal was safe and collateralized. The complaint alleged that investors' funds were not safe and collateralized and that none of the investors received a return of principal or payment of the promised profits.
The litigation against Benjamin R. Young, the remaining defendant named in the complaint, is continuing.