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DOCKET NO. CV-03-390
SECURITIES ADMINISTRATOR, )
v. ) COMPLAINT
CHARLES S. CLARK and CLARK & )
STUART, INC., )
1. The State of Maine and Securities Administrator (hereinafter collectively referred to as “the State”) bring this action against Charles S. Clark (“Clark”) and Clark & Stuart, Inc. (“C&S”) for violations of the Revised Maine Securities Act, 32 M.R.S.A. §§ 10101-10713 (1999 and Supp. 2002), in that they engaged in acts that operated as a fraud or a deceit upon their clients, Joan and Leonard Alley.
2. This Court has jurisdiction pursuant to 32 M.R.S.A. §§ 10602-10603 (1999 and Supp. 2002).
C&S is a
served as the investment adviser for Joan and Leonard Alley from the summer of
1998 until early 2001. In providing
investment adviser services to the Alleys, C&S acted exclusively through
subsequent phone conversations,
Alleys met with Clark, who appeared to be the only other person at the C&S
office. Pursuant to their earlier
discussion at the Alleys’ home, the Alleys turned $10,000 in cash over to
the $10,000 investment did not appear on the Alley’s monthly account
statements, Joan Alley questioned
date, the $10,000 turned over by the Alleys to
14. The Act prohibits investment advisers and their employees from engaging “in any act, practice, or course of business which operates . . . as a fraud or deceit upon any client.” 32 M.R.S.A. § 10203 (1999).
15. The Securities Administrator may refer violations of the Act to the Attorney General for enforcement, and the Attorney General may initiate a civil action in the Superior Court. 32 M.R.S.A. § 10602(1)(D) (1999).
16. In an enforcement action under the Act, the Court may grant a variety of legal and equitable remedies, including injunctions, civil penalties, restitution to investors and disgorgement. 32 M.R.S.A. § 10603 (1999).
(Fraud or Deceit by an Investment Adviser or an Investment Adviser’s Employee)
17. The State repeats and realleges paragraphs 1 through 16 as if set forth fully herein.
18. By misrepresenting to the Alleys that Clark would invest the $10,000 on their behalf, and instead converting the money to Clark’s own use, Clark and C&S engaged in acts, practices, and a course of business that operated as a fraud or deceit upon the Alleys, all in violation of 32 M.R.S.A. § 10203 (1999).
REQUEST FOR RELIEF
WHEREFORE, the State requests that this Honorable Court grant the following relief:
1. An order requiring Clark and C&S to make full restitution to the Alleys by returning all monies to them plus interest; and
2. Such other and further relief as this Court deems appropriate.
/s/ Michael J. Colleran
MICHAEL J. COLLERAN
Assistant Attorney General
6 State House Station
Tel. (207) 626-8800
Bar. No. 9247
Attorney for Plaintiffs