SEC v. Mojave Valley Resort, Inc.; and Mark A. Temple, No. LR-18852, Central District of California — Press Release
raw: Mojave Valley Resort, Inc. and Mark A. Temple
Mojave Valley Resort, Inc. and Mark A. Temple, No. LR-18852
Mojave Valley Resort, Inc. and co-owner Mark A. Temple defrauded investors by falsely claiming $12.75 million municipal bonds were secured by Tribal land deeds of trust, when no such security existed due to lack of tribal and federal approval, leading to an $11 million default and a settlement of $40,001 in penalties and disgorgement plus a permanent injunction.
The SEC charged Mojave Valley Resort, Inc. (MVRI) and co-owner Mark A. Temple with securities fraud for misrepresenting in a $12.75 million bond offering that the bonds were secured by deeds of trust on Fort Mojave Indian Tribe land. In reality, their lease prohibited such security interests without approval from the Tribe and the Bureau of Indian Affairs, which they never obtained, rendering the offering materials materially false. After MVRI defaulted, investors were left owed approximately $11 million; without admitting or denying the allegations, the defendants settled by paying $1 in disgorgement, a $40,000 civil penalty, and consenting to a permanent injunction for violating Sections 10(b) and 17(a) of federal securities laws.
The Securities and Exchange Commission brought fraud charges against Palm Springs-based developer Mojave Valley Resort, Inc. (MVRI) and its co-owner Mark A. Temple for misleading investors in a $12.75 million municipal bond offering intended to finance a casino and housing project on Fort Mojave Indian Tribe land near Laughlin, Nevada. The offering documents falsely asserted that the bonds were secured by deeds of trust on the Tribal property, but MVRI’s lease with the Tribe explicitly prohibited granting such security interests without prior approval from both the Tribe and the U.S. Bureau of Indian Affairs—approval that was never sought or obtained. As a result, investors had no legal security interest in the underlying assets, and when MVRI subsequently defaulted on the bonds, approximately $11 million in investor funds remained unpaid. Without admitting or denying the allegations, MVRI and Temple agreed to settle the SEC’s enforcement action by paying a total of $40,001—$1 in disgorgement and a $40,000 civil penalty—and consenting to a permanent injunction barring future violations of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5, and Section 17(a) of the Securities Act of 1933. The SEC’s complaint, filed in federal court in California, emphasized the materiality of the misrepresentations and the failure to disclose the legal barriers to securing the bonds. The case underscores the risks of misrepresenting collateral in municipal bond offerings, particularly when涉及 federally protected tribal lands. The settlement, while modest in monetary terms, serves as a deterrent against similar deceptive practices in structured financings involving sovereign or tribal assets.
Exhibits & Attached Documents (1)
Extracted insights
- $12.75M $12.75 million $10M–$100M
- $11.00M $11 million $10M–$100M
- $40K $40,001 $10K–$100K
- $40K $40,000 $10K–$100K
- person Investors
- agency the securities and exchange commission
- The Securities and Exchange Commission announced settled fraud charges against Mojave Valley Resort, Inc. and Mark A. Temple
- Mojave Valley Resort, Inc. defrauded investors
- Mark A. Temple defrauded investors
- Mojave Valley Resort, Inc. and Mark A. Temple falsely claimed the bonds were protected by a security interest in the property being developed
- municipal bond offering financed housing and casino project in Nevada
The Securities and Exchange Commission today announced that it has brought settled fraud charges against Palm Springs developer Mojave Valley Resort, Inc. ("MVRI") and co-owner Mark A. Temple, stemming from a municipal bond offering conducted to finance a housing and casino project in Nevada. The complaint alleges that MVRI and Temple defrauded investors by falsely claiming that the bonds were protected by a security interest in the property being developed, when in fact no such security interest existed. Without admitting or denying the allegations, MVRI and Temple have agreed to settle the enforcement proceeding by paying $40,001 in disgorgement and penalties and by consenting to a permanent injunction against future securities law violations. According to the Commission's civil complaint, MVRI is the developer of a casino and housing project on Indian land owned by the Fort Mojave Indian Tribe near Laughlin, Nevada. MVRI financed the development project through a $12.75 million bond offering in late 1999. The Commission charges that MVRI and Temple falsely stated in the offering materials that the bonds being issued to investors were secured by deeds of trust on the Tribal property. In actuality, MVRI's lease with the Tribe provided that no such security interest could be given absent approval from the Tribe and the United States Bureau of Indian Affairs. MVRI and Temple had failed to obtain such authorization, and, as a result, the offering materials were false and investors had no security interest for the bonds. MVRI subsequently defaulted on the bonds, and investors are owed approximately $11 million. The Commission's lawsuit, which is being brought in federal district court in the Central District of California, charges MVRI and Temple with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. Under the settlement, MVRI and Temple will be enjoined by the district court from violating these statutory provisions, and will pay disgorgement of $1 and a civil penalty of $40,000. SEC Complaint in this matterThe Securities and Exchange Commission today announced that it has brought settled fraud charges against Palm Springs developer Mojave Valley Resort, Inc. ("MVRI") and co-owner Mark A. Temple, stemming from a municipal bond offering conducted to finance a housing and casino project in Nevada. The complaint alleges that MVRI and Temple defrauded investors by falsely claiming that the bonds were protected by a security interest in the property being developed, when in fact no such security interest existed. Without admitting or denying the allegations, MVRI and Temple have agreed to settle the enforcement proceeding by paying $40,001 in disgorgement and penalties and by consenting to a permanent injunction against future securities law violations. According to the Commission's civil complaint, MVRI is the developer of a casino and housing project on Indian land owned by the Fort Mojave Indian Tribe near Laughlin, Nevada. MVRI financed the development project through a $12.75 million bond offering in late 1999. The Commission charges that MVRI and Temple falsely stated in the offering materials that the bonds being issued to investors were secured by deeds of trust on the Tribal property. In actuality, MVRI's lease with the Tribe provided that no such security interest could be given absent approval from the Tribe and the United States Bureau of Indian Affairs. MVRI and Temple had failed to obtain such authorization, and, as a result, the offering materials were false and investors had no security interest for the bonds. MVRI subsequently defaulted on the bonds, and investors are owed approximately $11 million. The Commission's lawsuit, which is being brought in federal district court in the Central District of California, charges MVRI and Temple with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. Under the settlement, MVRI and Temple will be enjoined by the district court from violating these statutory provisions, and will pay disgorgement of $1 and a civil penalty of $40,000. SEC Complaint in this matter