Garfield Taylor, Inc., et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22665 / April 3, 2013

Securities and Exchange Commission v. Garfield Taylor, Inc., et al., Civil Action No. 1:11-CV-02054-RLW (District Court for the District of Columbia)

SEC OBTAINS FINAL JUDGMENT AGAINST FORMER CHIEF INVESTMENT OFFICER OF GIBRALTAR ASSET MANAGEMENT GROUP, LLC

On April 3, 2013, the Securities and Exchange Commission announced that the Honorable Robert L. Wilkins, United States District Judge for the District of Columbia, entered final judgment on March 28, 2013, against Maurice G. Taylor to settle charges related to his collaboration in a multi-million dollar Washington-area Ponzi scheme operated through Gibraltar Asset Management Group, LLC and Garfield Taylor, Inc. (GTI):

Maurice G. Taylor, of Bowie, Md., formerly Chief Investment Officer at Gibraltar, without admitting or denying the allegations in the SEC's complaint, consented to the entry of a Final Judgment permanently enjoining him from violations of Section 17(a) of the Securities Act of 1933 and ordering payment of monetary relief in an amount to be determined by the Court upon motion of the Commission.  Following an evidentiary hearing, the Court entered a Final Judgment permanently enjoining Taylor and ordering him to pay $463,785 in disgorgement and $50,682.50 in prejudgment interest, for a total of $514,467.50.

The Commission filed a complaint on November 18, 2011, alleging that Gibraltar's and GTI's former Chief Executive Officer, Garfield M. Taylor, operating through GTI and Gibraltar, with the assistance of Maurice G. Taylor, Benjamin C. Dalley, Randolph M. Taylor, William B. Mitchell and Jeffrey A. King, conducted a multi-million Ponzi scheme targeting investors in the Washington D.C. metropolitan area.  According to the SEC's complaint, the defendants defrauded more than $27 million from approximately 130 investors between 2005 and 2010.      

The Commission's case is still pending against the remaining defendants: Garfield M. Taylor, Jeffrey A. King, GTI, Gibraltar, and The King Group, LLC.  On September 17, 2012, the Court granted the Commission's motion for default judgment as to Jeffrey King, GTI, Gibraltar and The King Group, LLC, but has not yet determined the appropriate relief against them.  On December 13, 2012, the Court granted the Commission's motion for summary judgment on all charges sought by the Commission against Garfield Taylor.  On March 28, 2013, the Court granted Garfield Taylor's motion to hold the case against him in abeyance, in light of pending federal criminal charges against him.

For further information, please see Litigation Release No. 22162 (November 18, 2011) and Litigation Release No. 22611 (February 5, 2013).