U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19392 / September 26, 2005
Securities and Exchange Commission v. Harvey P. Tabb, U.S. District Court for the Central District of California, Civil Action No. EDCV 05-00877 (SGL)
SEC FILES SETTLED ENFORCEMENT ACTION AGAINST HARVEY P. TABB
The Securities and Exchange Commission today announced the filing on September 20, of a complaint in the United States District Court for the Central District of California against Harvey P. Tabb, a repeat securities law violator who is the subject of a permanent injunction obtained by the Commission in 1995. The Commission charged Tabb with violating the antifraud and securities registration provisions of the federal securities laws in connection with his offering of interests in a wine grape venture in Temecula, California called "Buy the Vine."
The complaint alleges that, between spring 2001 and September 2003, Tabb raised approximately $2.3 million for Buy the Vine from 50 investors nationwide by selling securities in the form of purported "general partnership" interests through general public solicitation. According to the complaint, when selling the securities, Tabb misrepresented and omitted to disclose information relating to the projected returns on the grape vineyards, the funds needed to operate the venture, the ownership of the vineyard lands, and the business experience and disciplinary histories possessed by him and his son, who was touted as a manager of the venture. The complaint also alleges that Tabb misappropriated investor funds for purposes undisclosed to investors.
Without admitting or denying the Commission's allegations, Tabb consented to the entry of a final judgment that permanently enjoins him from (1) violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and (2) participating in the sale of or offer to sell any security (including purported partnership interests) in an unregistered transaction. Tabb also agreed to pay a civil penalty of $50,000. The final judgment is subject to court approval.
SEC Complaint in this matter
http://www.sec.gov/litigation/litreleases/lr19392.htm
