Edward J. Paradis, Jr. and Walter R. Snyder

LITIGATION RELEASE NO. 16201 / June 30, 1999

Securities and Exchange Commission v. Edward J. Paradis, Jr. and Walter R. Snyder, Jr., Civil Action No. 98-10638-NG (D. Mass. Apr. 13, 1998)

COURT ORDERS DEFENDANTS TO PAY MORE THAN $325,000 FOR USING ATTORNEY'S ESCROW ACCOUNT TO PERPETRATE OFFERING FRAUD

          The Securities and Exchange Commission announced that on March 11, and June 22, 1999, final judgments were entered, respectively, against defendants WALTER R. SNYDER, JR., of Southbridge, Massachusetts, and EDWARD J. PARADIS, JR., of Sturbridge, Massachusetts. The final judgments require Paradis and Snyder to pay more than $325,000 in disgorgement and monetary penalties for their roles in a fraudulent offering of unregistered securities. Snyder was formerly licensed to practice law in Massachusetts.

          In its Complaint, the Commission had alleged that Paradis and Snyder obtained $175,000 from an investor, promising him a return of over 300% in stock and cash within thirty days. According to the Commission's complaint, Paradis and Snyder falsely told the investor that his money would be safely held in Snyder's attorney escrow account until completion of a "financing" transaction that would produce the 300% profit. Contrary to their promises to the investor, however, Paradis and Snyder began removing the investor's funds immediately after they were received in Snyder's account, ultimately misappropriating approximately $150,000 by using it for personal purposes such as paying Paradis' rent.

          The final judgment against Paradis was entered upon the Commission's motion for summary judgment and the final judgment against Snyder was entered by default. The final judgments permanently enjoin the defendants from future 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, order them to jointly and severally disgorge the $175,000 they obtained from the defrauded investor, plus prejudgment interest thereon, and to each pay a civil penalty of $75,000.

          The Commission filed its Complaint on an emergency basis on April 13, 1998. At that time the Judge ordered a freeze of the assets of Paradis and Snyder.

          For further information, please see Litigation Release No. 15706 (April 14, 1998)