OTHER NEWS - June 25, 1994

Scam Victimizes 700 Investors: The Securities and Exchange Commission said it got an order freezing the assets of Owen R. Fox of Playa del Rey and four associates who the agency contends defrauded more than 700 investors of about $21 million. The group told investors their money would be lent to companies holding accounts receivable from the federal government, and promised investment returns of 10% to 24% a year. The SEC alleged that some of the investor funds were used to buy bank obligations from foreign banks that in many cases did not exist. In truth, according to the agency, the operation was a Ponzi scheme in which early investors were paid returns out of money invested by subsequent victims. Of the $21 million taken in, about $15 million was misappropriated, SEC documents say.