U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19206 /April 27, 2005

Securities and Exchange Commission v. Elfindepan et al., Civil action No. 1:00-CV-00742 (WLO) (M.D.N.C.)

SEC SETTLES PRIME BANK CASE AGAINST P. THOMAS MANN, RDC FUNDING CORP., RDC DEVELOPMENT CO., AND PTM INVESTMENT CORP.

The U.S. Securities and Exchange Commission announced today that, on April 19, 2005, the Honorable William L. Osteen, United States District Judge for the Middle District of North Carolina, entered final judgments by consent imposing disgorgement and full injunctive relief against P. Thomas Mann and three entities he controls, RDC Funding Corporation, RDC Development Company and PTM Investment Corporation. The Commission's Second Amended Complaint, which was filed on August 30, 2002, alleges that Mann, along with previously settled defendants Patrick Wilson and Jeffrey Salazar, solicited individuals to invest in a prime bank scheme involving a $100 million bond offering issued by RDC Funding. According to the complaint, Mann and others falsely represented to investors that the bond deal would generate revenue through overnight trading in U.S. securities and that investors would receive $10 million for every $1 million invested.

Without admitting or denying the allegations in the complaint, Mann and the entities he controls each consented to the entry of a Final Judgment permanently enjoining them from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Mann has consented to pay $144,000 in disgorgement. Based upon their demonstrated inability to pay, neither Mann nor the three entities were ordered to pay a civil penalty and the remainder of the disgorgement amount was waived. RDC Funding was ordered to assign its interest in a lawsuit arising from the bond deal to a court appointed receiver. The receiver will distribute any proceeds derived from the suit along with other funds collected during the litigation to the defrauded investors.

See also: L.R. 16649 (August 10, 2000); L.R.16892 (February 8, 2001); L.R. 16977 (April 26, 2001); L.R. 17723 (September 12, 2002)

http://www.sec.gov/litigation/litreleases/lr19206.htm