FINAL JUDGEMENT ENTERED IN SUN VILLAGE CASE

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

October 5, 2012 the Honorable James C. Mahan, United States District Judge

for the District of Nevada, entered a Final Judgment against Derek F.C. Elliott

On May 24, 2012, the United States Securities and Exchange Commission filed a

complaint, in the United States District Court for the District of Nevada,

against James B. Catledge, Derek F.C. Elliott, EMI Resorts (S.V.G.) Inc., EMI

Sun Village, Inc. and Sun Village Juan Dolio alleging that James B. Catledge and

Elliott, and certain of their related entities, made material misrepresentations

to investors in connection with the unregistered sale of interests in two

resorts in the Dominican Republic. The Final Judgment against Elliot seeks no

civil penalty at this time, waives disgorgement and authorizes the Commission to

seek a civil penalty of not more than $250,000 by subsequent motion.

The Final Judgment enjoins Elliott from future violations of Sections 5(a),

5(c) and 17(a)(1), (2) and (3) of the Securities Act of 1933 and Section 15(a)

of the Securities Exchange Act of 1934. Elliott consented to the relief granted

in the Final Judgment.

SEC CHARGES TWO INDIVUDUALS IN FRAUDULENT OFFERING OF INVESTMENTS IN DOMINICAN REPUBLIC RESORTS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
May 31, 2012
The Securities and Exchange Commission charged James B. Catledge and Derek F.C. Elliott, and certain of their related entities, with making material misrepresentations to investors in connection with the unregistered sale of interests in two resorts in the Dominican Republic.

The SEC alleges that Catledge, a Nevada resident, and Elliott, a Canadian citizen and resident of the Toronto area, raised more than $163 million from approximately 1,200 investors between the fall of 2004 and 2009. The securities offered, called “Residence” and “Passport” investments, represented timeshare and ownership interests, respectively, in the Cofresi and Juan Dolio resorts in the Dominican Republic

The complaint alleges that Catledge and Elliott promised investors a secure return of 8% to 12% annually on the Residence investment and 5% on the Passport investment. Investors were assured that their principal was safe, and that they would share in the projected appreciation in the value of the resorts. According to the SEC’s complaint, investor funds were not used to construct the properties, as had been represented, but instead were largely used for other purposes, including the payment of exorbitant undisclosed commissions and promised returns to earlier investors. The SEC alleges that, of the nearly $164 million raised from investors, approximately $59 million (36%) was used to pay commissions to Catledge, Elliott and several of their related entities, among others.

The SEC’s complaint seeks disgorgement of ill-gotten gains, financial penalties, and permanent injunctive relief against Catledge, Elliott, Sun Village Juan Dolio, Inc., EMI Sun Village, Inc. and EMI Resorts (S.V.G.), Inc. to enjoin them from future violations of the federal securities laws. As to Catledge and Elliott only, it also seeks an injunction against acting as an unregistered broker-dealer. The complaint also names D.R.C.I. Trust, which was beneficially owned by Catledge, as a relief defendant in this matter.
The SEC’s investigation was conducted by staff attorney Alison J. Okinaka and senior staff accountant Norman J. Korb in the Commission’s Salt Lake Regional Office. Senior trial counsel Thomas M. Melton is leading the litigation.

The SEC acknowledges the assistance of the Ontario Securities Commission, the U.S. Attorney’s Office for the Northern District of California and the Federal Bureau of Investigation.