Securities Bulletin

              In March 2003, the grand jury of the Circuit Court of
Cook County indicted Vincent Williams on three counts
of violation of the Illinois Securities Act and three counts
of theft. A registered investment adviser, Williams sold
fraudulent securities and converted funds from at least
seven Illinois
investors. He was
indicted for
converting about
$150,000 from an
elderly disabled
woman — her entire
retirement savings.
More counts are
expected based on
the other defrauded
investors.
The Securities
Department had
issued an Order of Prohibition against Williams in August
2002. Attorney General Lisa Madigan brought the case
against Williams this spring based on a referral from the
department.
In addition to the Williams case, Secretary of State Jesse
White and Attorney General Madigan recently issued a
multi-count complaint against Stan Edwards and Omni
Group. Edwards promised at least one Illinois investor
that her $30,000 investment in Omni would double in
60 days. Edwards failed to disclose the company's
history of bad checks and troubled financial condition,
which would make it unable to repay the investment
earnings.
The Securities Department had issued an Order of
Prohibition against Edwards and Omni Group in October
2002. On March 18, 2003, the Chancery Court of Cook
County enjoined Stan Edwards from selling securities in
or from Illinois, among other penalties, in the Attorney
General's broader action.
SECURITIES bulletin
As the spring session of the Illinois General Assembly
closed, much talk focused on the state budget. However,
my office was successful in having several pieces of
substantive legislation passed, among them, Senate Bill
1865, which provides additional protections for Illinois
investors.
Sponsored by Sen. Patrick Welch and Rep. Robert Molaro
and co-sponsored by Senators Susan Garrett and Barack
Obama and Rep. Eddie Washington, SB 1865 amends the
Illinois Securities Law to provide greater protection to
people who invest their hard-earned money and, all too
often, discover they have become victims of securities
fraud. The legislation targets securities dealers who use
false financial statements to induce people to invest their
money. It also makes it a violation for employees of
brokers and investment advisers to engage in unethical
behavior and to fail to maintain records and documents
required by law.
Additionally, the legislation allows for the appointment of
“special agents” with limited police powers to assist in the
arrest of financial criminals, filling a gap left by the
reassignment of federal agents to homeland and national
security matters. The bill also provides for the seizure and
forfeiture of assets obtained through defrauding investors.
The Securities Department, the Illinois Attorney General
and the Illinois State Bar Association all supported the
legislation with no group testifying in opposition.
My office is committed to working with the Attorney
General’s Office in filing suits to return assets to the victims
of securities fraud. I commend the
sponsors of this legislation for their
leadership in passing the bill and the
entire 93rd General Assembly for its
continued support of Illinois investors.
Jesse White
Secretary of State
Summer 2003
Secretary of State Jesse White
and Attorney General Lisa
Madigan join forces
to combat securities fraud
IN
THIS
ISSUE
• COMBATTING SECURITIES FRAUD •
• INVESTOR EDUCATION •
• BRANCH OFFICE REPORTING DEADLINE •
• ENFORCEMENT ADMINISTRATIVE ORDERS •
• LEGAL NOTES •
A NEWSLETTER OF THE ILLINOIS SECURITIES DEPARTMENT • SECRETARY OF STATE JESSE WHITE