The commission filed a complaint against VestCorp Securities and other individual defendants on May 13, 1994 in the U.S.District Court for the Central District of California. The Commission alleged violations of the antifraud provisions of the federal securities laws, with up to $124 million in investor and pension funds at risk. The Commission alleged that from 1981 through April 1994, certain defendants, operating through VestCorp, offered and sold limited partnerships to investors who held their units in self-directed IRA accounts at First Pension Corp. The complaint alleged that certain defendants misappropriated approximately $25 million of First Pension funds, wrote unauthorized checks and failed to disclose that the trust deeds securing the limited partnerships did not exist, that the limited partnerships never generated any income, and that the investors' returns were paid or by a secret account which was funded by diverting other First Pension client funds.... (more)

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