Glen W. Hilker, et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19433 / October 19, 2005

SEC v. Glen W. Hilker, et al., Civil Action No. 03-cv-1338-REB-OES (D. Colo., filed July 24, 2003)

SEC OBTAINS PERMANENT INJUNCTION AGAINST GLEN W. HILKER AND RELIEF AGAINST TRICORD LLC

The U.S. Securities and Exchange Commission announced that on October 13, a federal court in Denver entered an agreed order permanently enjoining Glen W. Hilker (Hilker), of Englewood, Colorado, from violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court also ordered Hilker to pay disgorgement of ill-gotten gains of $727,950, prejudgment interest thereon of $94,241.38, and a civil penalty in an amount to be determined by the Court upon motion by the Commission. Also on October 13, the Court entered an agreed order requiring Tricord LLC to pay disgorgement of ill-gotten gains of $500,000, plus prejudgment interest thereon of $64,730.67.

The Commission's Complaint alleged that from September through March 2003, Hilker and Larry M. Baker fraudulently sold securities in a real estate project in Dacono, Colorado, making false and misleading statements to investors and diverting approximately $3 million of investor funds to uses unrelated to the project. The Complaint also alleged that Hilker diverted investor funds to Tricord LLC, a Colorado limited liability company controlled by him.