Victims of Scam to Get Partial Refunds

Investors will receive partial refunds on $1.36 million lost in an investment scheme run by a Lake Forest man who apparently has fled, the Securities and Exchange Commission said. The SEC obtained a federal court order in Los Angeles earlier this week that allows it to begin returning $280,600--or about 20 cents on the dollar--that was seized last spring from John C. Rockett, 58, and Affordable Prepaid Cellular Inc., which he co-owned. The agency hasn’t been able to find Rockett since serving him in May with its lawsuit, said Kathleen Bisaccia, an SEC staff attorney. The company began offering $5,000 corporate notes in January 1997, to fund its business, providing prepaid cellular telephone service to “credit-challenged” individuals. In less than five months, it raised nearly $1.36 million. The SEC obtained a court order halting the securities sales in May because of Rockett’s long disciplinary history, which included a securities fraud conviction and bans on selling securities in several states.