SEC Obtains Final Judgments on Charges of Fraudulent Mini Tender Offers

Defendants were brothers and their company, for which they were the President and Vice President. The SEC charged them with making substantial unlawful profits and causing investors to suffer millions of dollars in losses, by making fraudulent mini tender offers through shell companies for shares of Fleming Companies, Inc., Fruit of the Loom, Ltd., and Mattel, Inc. Mini tender offers are offers for less than five percent of a registered class of securities. In addition to monetary sanctions, defendants were also permanently enjoined from future violations.