U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19087 / February 17, 2005

Securities and Exchange Commission v. Resource Development International, LLC, et al., USDC/ND/TX [Dallas Division], Civil Action No. 3:02-CV-0605-R

COURT ENTERS FINAL JUDGMENT BY CONSENT AGAINST WILLIAM WHELAN

The Securities and Exchange Commission announced that United States District Judge Jerry Buchmeyer entered a Final Judgment of Permanent Injunction and Other Equitable Relief As to Defendant William Whelan. The Commission's Complaint, filed March 25, 2002, alleged that Whelan, together with several other defendants, violated the antifraud and registration provisions of the federal securities laws by participating in a Ponzi scheme centered around the offer and sale of a non-existent "prime bank" trading program. [Lit. Rel. No. 17438/March 26, 2002]. The Commission lawsuit alleged that Resource Development International, its principals, James and David Edwards, and other defendants, including Whelan, collected more than $98 million from more than 1300 investors through numerous misrepresentations and omissions, including false and misleading statements concerning the existence of the prime bank trading program, the safety of the investment, the purported participation of governmental and international organizations, and the use of investor funds.

Without admitting or denying the allegations in the Commission's Complaint, Whelan consented to entry of the Final Judgment that permanently enjoins him from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Final Judgment also orders Whelan to disgorge of $140,026, plus prejudgment interest thereon of $31,400. The Commission waived payment of the disgorgement and declined to impose a civil monetary penalty against Whelan, based on Whelan's demonstrated inability to pay.

http://www.sec.gov/litigation/litreleases/lr19087.htm