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STATE OF
DOCKET NO. CV-03-390
STATE OF
SECURITIES ADMINISTRATOR, )
)
Plaintiffs, )
)
v. ) COMPLAINT
)
CHARLES S. CLARK and CLARK & )
STUART, INC., )
)
Defendants. )
INTRODUCTION
1. The State of Maine and Securities Administrator (hereinafter collectively referred to as “the State”) bring this action against Charles S. Clark (“Clark”) and Clark & Stuart, Inc. (“C&S”) for violations of the Revised Maine Securities Act, 32 M.R.S.A. §§ 10101-10713 (1999 and Supp. 2002), in that they engaged in acts that operated as a fraud or a deceit upon their clients, Joan and Leonard Alley.
JURISDICTION
2. This Court has jurisdiction pursuant to 32 M.R.S.A. §§ 10602-10603 (1999 and Supp. 2002).
PARTIES
3.
4. Defendant
5. Defendant
C&S is a
FACTUAL
BACKGROUND
6. C&S
served as the investment adviser for Joan and Leonard Alley from the summer of
1998 until early 2001. In providing
investment adviser services to the Alleys, C&S acted exclusively through
7. On
or about
8.
9. During
subsequent phone conversations,
10. The
Alleys met with Clark, who appeared to be the only other person at the C&S
office. Pursuant to their earlier
discussion at the Alleys’ home, the Alleys turned $10,000 in cash over to
11. When
the $10,000 investment did not appear on the Alley’s monthly account
statements, Joan Alley questioned
12. To
date, the $10,000 turned over by the Alleys to
Statutory Background
13. The
Revised
14. The Act prohibits investment advisers and their employees from engaging “in any act, practice, or course of business which operates . . . as a fraud or deceit upon any client.” 32 M.R.S.A. § 10203 (1999).
15. The Securities Administrator may refer violations of the Act to the Attorney General for enforcement, and the Attorney General may initiate a civil action in the Superior Court. 32 M.R.S.A. § 10602(1)(D) (1999).
16. In an enforcement action under the Act, the Court may grant a variety of legal and equitable remedies, including injunctions, civil penalties, restitution to investors and disgorgement. 32 M.R.S.A. § 10603 (1999).
COUNT I
(Fraud or Deceit by an Investment Adviser or an Investment Adviser’s Employee)
17. The State repeats and realleges paragraphs 1 through 16 as if set forth fully herein.
18. By misrepresenting to the Alleys that Clark would invest the $10,000 on their behalf, and instead converting the money to Clark’s own use, Clark and C&S engaged in acts, practices, and a course of business that operated as a fraud or deceit upon the Alleys, all in violation of 32 M.R.S.A. § 10203 (1999).
REQUEST FOR RELIEF
WHEREFORE, the State requests that this Honorable Court grant the following relief:
1. An order requiring Clark and C&S to make full restitution to the Alleys by returning all monies to them plus interest; and
2. Such other and further relief as this Court deems appropriate.
/s/
Michael J. Colleran
MICHAEL J. COLLERAN
Assistant Attorney General
6 State House Station
Tel. (207) 626-8800
Bar. No. 9247
Attorney for Plaintiffs