Court Enters Final Judgment by Consent Against Defendant Farouk A. Khan
"The Commission announced that on July 28, 2006, a Rhode Island federal court entered a final judgment by consent against Farouk A. Khan, a defendant in a fraud action filed by the Commission in April 2002. The Commission alleged in its complaint that Khan and others participated in a fraudulent offering scheme that raised at least $52 million from investors.
The Commission filed its action against Khan and eight other defendants and a relief defendant on April 1, 2002, alleging that Khan and others participated in a scheme that made fraudulent representations to investors about a purported high yield trading program operated through entities formerly known as Brite Business Corporation and Seaview Development & Holdings Ltd. Among other things, the Commission alleged in its complaint that in an attempt to convince an investor to invest additional funds, Khan made fraudulent misrepresentations to the investor by promising him a 107% annual return on investment."
The consent judgment means that there will be little to return to the victims, but the Commission will later trumpet its success in obtaining a restitution judgment.
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