Securities & Exchange Commission v. Cross Financial Services, Inc.

ORDER GRANTING SECURITIES AND EXCHANGE COMMISSION’S MOTIONS FOR SUMMARY JUDGMENT AGAINST DEFENDANTS FOX, FRANKLIN, CROSS, SIEMENS, AND RELIEF DEFENDANT COLELLO AND DENYING COLELLO’S MOTION TO DISMISS OR FOR SUMMARY JUDGMENT

PAEZ, District Judge.

I

INTRODUCTION

This case illustrates the adage “if it sounds too good to be true, it probably is.” From March 1993 through June 1994, defendants devised and participated in a scheme to raise money from investors by representing that they would use investors’ funds to engage in factoring accounts receivable. 1 Defendants represented that investors would…