SEC v. Kenneth D. Ough, No. LR-16259, Northern District of Illinois (Aug. 23, 1999) — Press Release
raw: Kenneth D. Ough
Kenneth D. Ough, No. LR-16259 (Aug. 23, 1999)
Kenneth D. Ough, a former investment banker, was dismissed from an SEC fraud case alleging he failed to disclose the arbitrage purpose and risky strategy behind over $800 million in municipal securities tied to Orange County’s 1993–1994 investment pools, after a judge granted his summary judgment motion.
The U.S. Securities and Exchange Commission accused Kenneth D. Ough, a former investment banker at Rauscher Pierce Refsnes, of fraud in connection with over $800 million in municipal securities linked to Orange County’s high-risk Investment Pools in 1993–1994, claiming he concealed the arbitrage purpose and risky investment strategy from investors. On August 18, 1999, Judge Gary L. Taylor denied the SEC’s motion for summary judgment and granted Ough’s, effectively dismissing the case without a trial. The SEC is currently reviewing whether to appeal the ruling.
Kenneth D. Ough, a former investment banker associated with Rauscher Pierce Refsnes, was named in a civil enforcement action by the U.S. Securities and Exchange Commission for alleged fraud related to over $800 million in municipal securities issued in connection with Orange County’s Investment Pools during 1993–1994. The SEC claimed Ough failed to disclose critical information to investors, including the arbitrage purpose of the securities and the high-risk, leveraged nature of the underlying County Pools. On August 18, 1999, Judge Gary L. Taylor granted Ough’s motion for summary judgment and denied the SEC’s, ruling that the Commission had not met its burden to prove fraud as a matter of law. As a result, the case against Ough was dismissed and will not proceed to trial. The decision has prompted the SEC to evaluate whether to appeal the ruling. Ough’s defense successfully argued that the Commission lacked sufficient evidence to establish intentional misconduct or material omission. The case remains closed unless the SEC files an appeal, which has not yet been confirmed.
Extracted insights
- $800.00M $800 million $100M–$1B
- person defendant ough
- company fraud in the issuance of over $800 million of municipal securities
- person gary l. taylor
- company important information about these securities
- Gary L. Taylor granted summary judgment motion of Kenneth D. Ough
- Gary L. Taylor denied Commission's motion for summary judgment
- Commission's Complaint alleged Defendant Ough engaged in fraud
- Defendant Ough engaged in fraud in the issuance of over $800 million of municipal securities
- Defendant Ough failed to disclose important information about these securities
- case against Defendant Ough will not proceed to trial
- decision is being reviewed to determine whether the Commission will appeal
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16259 / August 23, 1999 On August 18, Gary L. Taylor granted the summary judgment motion of Kenneth D. Ough, a defendant in a civil enforcement action commenced by the Securities and Exchange Commission. Judge Taylor simultaneously denied the Commission's motion for summary judgment against Defendant Ough. The Commission's Complaint (filed in August 1998) alleged that Defendant Ough, an investment banker formerly associated with the Rauscher Pierce Refsnes brokerage firm (now known as Dain Rauscher, Inc.), engaged in fraud in the issuance of over $800 million of municipal securities related to the Orange County Investment Pools in 1993 and 1994. The Commission's Complaint alleged that Defendant Ough failed to disclose important information about these securities to investors, including information about the arbitrage purpose of the securities offerings and the contents and risky investment strategy of the County Pools. As a result of Judge Taylor's ruling, the case against Defendant Ough will not proceed to trial. The decision is being reviewed to determine whether the Commission will appeal.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16259 / August 23, 1999 On August 18, Gary L. Taylor granted the summary judgment motion of Kenneth D. Ough, a defendant in a civil enforcement action commenced by the Securities and Exchange Commission. Judge Taylor simultaneously denied the Commission's motion for summary judgment against Defendant Ough. The Commission's Complaint (filed in August 1998) alleged that Defendant Ough, an investment banker formerly associated with the Rauscher Pierce Refsnes brokerage firm (now known as Dain Rauscher, Inc.), engaged in fraud in the issuance of over $800 million of municipal securities related to the Orange County Investment Pools in 1993 and 1994. The Commission's Complaint alleged that Defendant Ough failed to disclose important information about these securities to investors, including information about the arbitrage purpose of the securities offerings and the contents and risky investment strategy of the County Pools. As a result of Judge Taylor's ruling, the case against Defendant Ough will not proceed to trial. The decision is being reviewed to determine whether the Commission will appeal.