U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19021 / January 4, 2005

SEC v. Brad A. Weaver and Beta Asset Management, Inc., Civil Action No. 04 C 8279 (N.D. Ill., filed December 23, 2004)

PRELIMINARY INJUNCTION ENTERED AGAINST BRAD A. WEAVER AND BETA ASSET MANAGEMENT, INC.

The Securities and Exchange Commission announced that the Honorable Rebecca R. Pallmeyer, U.S. District Court Judge for the Northern District of Illinois, entered a preliminary injunction on January 3, restraining Brad A. Weaver, a Chicago resident, and his company, Beta Asset Management, Inc., from violating the antifraud provisions of the federal securities laws. The Defendants consented to the entry of the preliminary injunction without admitting or denying the allegations of the Commission's Complaint. The preliminary injunction extends the Court's previously issued temporary restraining order and asset freeze until final resolution of the Commission's Complaint. The Commission filed its Complaint on December 23, 2004.

In its Complaint, the Commission alleges that since March 2003, Weaver and Beta Asset Management, Inc., have raised more than $10 million by telling at least five investors that they could profitably trade in the "error accounts" of a broker-dealer at no risk. The Defendants' so-called error account trading strategy did not and could not have existed. The Complaint further alleges that the Defendants induced investors to "roll over" their alleged error account trading profits into a limited partnership. The Defendants represented that the limited partnership had $30 million in assets at an offshore company. Contrary to their representations, the limited partnership never had more than $30,000 in assets at the offshore company. The Complaint also alleges that the Defendants repeatedly delayed making requested payouts to investors strongly suggesting that the Defendants were attempting to raise money from new investors to repay current investors, as in a ponzi scheme.

The United States Attorney's Office in conjunction with the FBI and the Commission are attempting to identify individuals who invested with Weaver or Beta Asset Management, Inc. If you believe you have invested with either of them please provide the following information:

Name
Address
Phone Number
Total Amount Invested
Total Amount Returned

Please send this information via fax to 312-469-6215 attn: Lisa Diaz or mail to Lisa Diaz, Victim Witness Unit, United States Attorney's Office, 219 South Dearborn Street, 5th Floor, Chicago, IL 60604. FBI agents or Commission staff may contact investors to obtain additional information and to collect copies of relevant paperwork.

http://www.sec.gov/litigation/litreleases/lr19021.htm