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Note: The US Securities and Exchange Commission sued Jeffery Alan Lowrance and First Capital Savings & Loan, Ltd. (Fraudster), an investment firm, for injunctive relief, disgorgement of ill-gotten gains, and imposition of civil penalties. Fraudster promised in writing to investors an annual return of 18.7%, claimed that current trades were profitable although no trades were actually made, paid prior investors with new investors' money, and used some investors' money to finance a startup newspaper instead of the promised investments. Approximately USD 21 million was obtained from investors.

Fraudster also claimed to have "a letter of credit guaranteeing the security of investments, but no such letter ever existed."

The U.S. District Court for the Northern District of California, San Jose Division, Davila, J., granted default judgment in favor of the SEC.

[JEB/rdp]

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