SEC v. Lucita A. Zamoras; and First Fidelity, LLC, No. 1:17-cv-02528, Northern District of Illinois (Apr. 4, 2017) — Complaint

IN THE UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS

SECURITIES AND EXCHANGE
COMMISSION,
COMPLAINT
PLAINTIFF,
v.
Case No.:
LUCITA A. ZAMORAS,
Judge:
DEFENDANT.
Plaintiff, Securities and Exchange Commission (the “Commission”), for its Complaint
against Defendant Lucita A. Zamoras (“Zamoras” or “Defendant”) alleges as follows:
INTRODUCTION
1. This matter involves an offering and affinity fraud orchestrated by Lucita A.
Zamoras.  Zamoras solicited investors for a fraudulent promissory note program resulting in the
misappropriation of investor funds.
2. From at least October 2009 through December 2013, Zamoras raised
approximately $727,049 from at least six investors by engaging in a scheme that encouraged
investors to transfer their retirement funds, which had been invested in stable, interest bearing
annuities, to self-directed IRA accounts in order to issue promissory notes directly to Zamoras.
3. Zamoras led clients to believe that the promissory notes were safe long-term
investments that would generate a higher return than they had been getting from Zamoras’
insurance products.  However, once investors purchased the promissory notes from Zamoras,

Zamoras squandered the funds, using them for gambling and personal expenses.  She never
invested the funds in any entity or undertaking designed to provide a return to her victims.
4. In perpetrating her fraud, Zamoras preyed upon the Filipino community living in
and around the Chicago area.  Originally from the Philippines herself, she sought to earn her
victims’ trust by conveying a sense of shared experience.  Upon gaining their trust, she used that
trust to gain access to their funds, giving her victims the misimpression that the funds would be
invested in stable, interest-generating investments, all the while knowing that she intended to use
the funds to feed her gambling habit.
5. As a result of her fraud, Zamoras has betrayed her customers’ trust, has lost her
victims’ life savings, and has violated the federal securities laws by perpetrating an unlawful
scheme and course of business to defraud others in the offer, purchase or sale of securities.
JURISDICTION AND VENUE
6. This Court has subject matter jurisdiction by authority of Sections 20 and 22 of
the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. §§ 77t and 77v], and Sections 21 and
27 of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. §§ 78u and 78aa].
7. Defendant, directly and indirectly, singly and in concert, has made use of the
means and instrumentalities of interstate commerce and the mails in connection with the
transactions, acts and courses of business alleged herein, certain of which have occurred within
the Northern District of Illinois.
8. Venue for this action is proper in the Northern District of Illinois under Section
22(a) of the Securities Act [15 U.S.C. § 77v(a)], and under Section 27 of the Exchange Act [15
U.S.C. § 78aa], because certain of the transactions, acts, practices, and courses of business
2

alleged in this Complaint took place in this district and because the Defendant resides in and
transacts business in this district.
9. Defendant, unless restrained and enjoined by this Court, will continue to engage
in the transactions, acts, practices, and courses of business alleged herein and in transactions,
acts, practices, and courses of business of similar purport and object.
10. Defendant’s conduct took place in connection with the offer, purchase and/or sale
of securities.
DEFENDANT AND RELATED ENTITY
11. Lucita A. Zamoras, age 53, is a resident of Niles, Illinois.  Zamoras is the
founder and sole member of First Fidelity, LLC.  Zamoras has not been registered with the
Commission in any capacity.
12. First Fidelity, LLC (“First Fidelity”), is an Illinois limited liability company
located in Niles, Illinois.  First Fidelity purports to help clients achieve their long-term financial
goals by offering financial products and services, primarily various insurance products.  First
Fidelity has never been registered with the Commission in any capacity.
STATEMENT OF FACTS

Background

13. Zamoras opened First Fidelity in 2000 purportedly to help clients pursue their
long-term financial goals by providing retirement, insurance and tax services.
14. The First Fidelity website states that Zamoras strives to help her clients protect
their assets and secure their well-earned retirement in all economic environments.  First Fidelity
3

primarily does this through the sale of insurance products such as fixed annuities, indexed
annuities, and individual variable and term life insurance products.
15. First Fidelity clients are primarily located in the suburban Chicago area.  First
Fidelity’s only other employee was a receptionist/office manager who did not meet with clients.
16. Zamoras is originally from the Philippines and has built a clientele that includes
primarily elderly Filipino-Americans.  Her grasp of the Filipino language and culture allowed her
to win the trust of numerous clients, forming an especially strong bond with those who purchased
the fraudulent promissory notes in this matter.
17. Zamoras met many of her clients through free lunch investment seminars
sponsored by First Fidelity. Zamoras’ investors are unsophisticated with little prior investment
experience.  Many are first generation immigrants who have worked their entire life to save for
their retirement.
Zamoras’ Scheme to Defraud
18. Between 2009 and 2013, Zamoras encouraged several of her clients to open
accounts with a nontraditional individual retirement account (“IRA”) custodian, American
Pension Services, LLC (“APS”).
19. Most IRA custodians are banks or broker-dealers that limit the holdings in IRA
accounts to firm-approved traditional investments.  In contrast, APS, which formerly was a self-
directed IRA custodian, gives account owners the freedom to invest in anything consistent with
applicable IRS rules and regulations, including promissory notes.
20. The clients that purchased promissory notes from Zamoras had not heard of APS
until Zamoras made the recommendation that they roll their retirement funds over to APS.
4

21. Zamoras then encouraged her clients to transfer their retirement funds, previously
invested in stable insurance products through First Fidelity, to APS.
22. Trusting Zamoras, many of the clients followed her recommendation, transferring
their former employer sponsored 401(k) plans, held in fixed annuity products at First Fidelity, to
APS, often incurring a surrender charge on the sale.
23. Clients were then encouraged to invest their retirement funds at APS in unsecured
promissory notes issued by Zamoras.  The promissory notes are between the client and Zamoras
personally.
24. The promissory notes are all balloon notes with maturities of at least five years,
and most coming due after ten years.  Most notes carry an interest rate of between 3.5 -5% per
annum with all interest due in a lump sum payment at maturity.
25. All of the investor promissory notes are unsecured.  Zamoras dictated the terms of
the notes and failed to provide investors with any offering documents or other adequate
disclosure as to the true nature of the transaction, taking advantage of her clients’ lack of
sophistication and experience in investing.
26. Investors were led to believe that the promissory notes were a safe, secure
investment that would earn an above market interest rate.
27. In perpetrating her scheme, Zamoras took advantage of her clients’ lack of
investing experience, as none of them understood how Zamoras would invest their funds to earn
the 3.5 -5% guaranteed return, but nevertheless trusted her and went along with her
recommendation.
5

28. Indeed, several of the investors actually understood that their funds would remain
at APS and would safely earn the promised interest rate, not appreciating what a self-directed
IRA account was and that APS was not an insurance company or other interest-paying entity.
29. After signing the promissory notes, Zamoras instructed APS to wire investor
funds to her personal accounts at various national banks.  Zamoras is the only authorized signor
on those accounts.
30. Once the funds arrived in her personal account, Zamoras used the investor funds
for gambling or to pay her personal expenses.
31. Between October 2011 and March 2013, Zamoras withdrew over $1 million from
her bank accounts at various casinos.  Zamoras’ investors were a substantial source of her
gambling funds.
32. Although Zamoras lost all investor funds, the clients continued to receive
statements from APS showing the promissory notes held in the account at their original face
value.  This led the investors to believe that their funds were still safe and secure.
33. Zamoras led her investors to understand that their funds were in a safe, secure
investment program and that APS would hold the funds.  She did not tell investors she planned to
immediately transfer their funds to her personal account and use their money for personal
expenses and gambling. Investors would not have invested with Zamoras had they known she
was simply going to gamble with their retirement funds.
34. Little, if any, investor funds were ever invested by Zamoras.
6

35. Investors told Zamoras that their funds were essential to fund their retirement.
Many investors told Zamoras that these funds represented their life savings and they could not
afford to take any risk.
36. As described above, Zamoras’s investors are all unsophisticated investors with
little prior investment experience.  Many are first generation immigrants who have worked their
entire life to save for their retirement and are now left with nothing.
COUNT I

EMPLOYMENT OF A DEVICE, SCHEME OR ARTIFICE TO DEFRAUD

Violation of Section 17(a)(1) of the Securities Act [15 U.S.C. § 77q(a)(1)]

37. The Commission realleges and incorporates by reference the allegations contained
in paragraphs 1 through 36 above.
38. Defendant Zamoras, by engaging in conduct described above, directly or
indirectly, in the offer or sale of securities, by the use of the means or instruments of
transportation or communication in interstate commerce or by use of the mails, with scienter,
employed devices, schemes, or artifices to defraud.
39. By reason of the foregoing, Zamoras, directly or indirectly, violated, and unless
restrained and enjoined by this Court, will continue to violate Section 17(a)(1) of the Securities
Act [15 U.S.C. § 77q(a)(1)].
COUNT II

FRAUD IN THE OFFER OR SALE OF SECURITIES

Violations of Section 17(a)(3) of the Securities Act [15 U.S.C. § 77q(a)(3)]

40. The Commission realleges and incorporates by reference the allegations contained
in paragraphs 1 through 36 above.
7

41. Defendant Zamoras, by engaging in the conduct described above, directly and
indirectly, in the offer and sale of securities, by the use of the means or instruments of
transportation or communication in interstate commerce or by use of the mails, engaged in
transactions, practices, or courses of business which operate or would operate as a fraud or deceit
upon the purchaser.
42. By reason of the foregoing, Zamoras, directly or indirectly, violated, and unless
restrained and enjoined will continue to violate, Section 17(a)(3) of the Securities Act [15 U.S.C.
§ 77q(a)(3)].
COUNT III

FRAUD IN CONNECTION WITH THE PURCHASE OR SALE OF SECURITIES

Violations of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5(a) and

(c) thereunder [17 C.F.R. § 240.10b-5(a) and (c)]

43. The Commission realleges and incorporates by reference the allegations contained
in paragraphs 1 through 36 above.
44. Defendant Zamoras, by engaging in the conduct described above, directly or
indirectly, by the use of means or instrumentalities of interstate commerce or use of the mails, in
connection with the purchase or sale of securities, with scienter, employed devices, schemes, or
artifices to defraud, or engaged in acts, practices, or courses of business that operated or would
operate as a fraud and deceit upon other persons.
45. By reason of the foregoing, Zamoras violated, and unless restrained and enjoined
will continue to violate Section 10(b) of the Exchange Act [15 U.S.C. §78j(b)] and Rule 10b-5(a)
and (c) thereunder [17 C.F.R. § 240.10b-5(a) and (c)].
8

RELIEF REQUESTED
WHEREFORE, the Commission respectfully requests that this Court:
I.
Issue findings of fact and conclusions of law that Defendant committed the violations
charged herein.
II.
Issue in a form consistent with Rule 65(d) of the Federal Rules of Civil Procedure orders
that permanently enjoin Defendant and her officers, agents, servants, employees, attorneys, and
accountants, and those persons in active concert or participation with any of them, who receive
actual notice of the order by personal service or otherwise, and each of them, from engaging in
transactions, acts, practices, and courses of business described herein, and from engaging in
conduct of similar purport and object in violation of Section 17(a)(1) and (3) of the Securities
Act, Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) thereunder.
III.
Enter an order directing Defendant to pay civil money penalties pursuant to Section 20(d)
of the Securities Act and Section 21(d)(3) of the Exchange Act.
IV.
Enter an order directing Defendant to disgorge all ill-gotten gains received during the
period of violative conduct and pay prejudgment interest on such ill-gotten gains.
V.
Retain jurisdiction of this action in accordance with the principles of equity and the
Federal Rules of Civil Procedure in order to implement and carry out the terms of all orders and
9

decrees that may be entered, or to entertain any suitable application or motion for additional
relief within the jurisdiction of this Court.
Dated: April 3, 2017.
Respectfully submitted,
/s/ Benjamin J. Hanauer
Benjamin J. Hanauer
[email protected]
U.S. Securities & Exchange Commission
175 West Jackson, Suite 1450
Chicago, IL 60604
312-353-8642
Daniel J. Wadley (pro hac vice pending)

[email protected]

Amy J. Oliver (pro hac vice pending)

[email protected]

Paul N. Feindt (pro hac vice pending)

[email protected]

U.S. Securities & Exchange Commission
351 So. West Temple, Suite 6.100
Salt Lake City, Utah 84101
Tel.  801-524-5796
10

ILND 44   (Rev. 07/13/16)
CIVIL COVER SHEET

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law,  except as
provided by local rules of court.  This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the
purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
I. (a) PLAINTIFFS DEFENDANTS
(b) County of Residence of First Listed Plaintiff
County of Residence of First Listed Defendant
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.
(c) Attorneys (Firm Name, Address, and Telephone Number)
Attorneys (If Known)
II.  BASIS OF JURISDICTION (Place an “X” in One Box Only)
1 U.S. Government 3 Federal Question
Plaintiff (U.S. Government Not a Party)
2 U.S. Government 4 Diversity
Defendant (Indicate Citizenship of Parties in Item III)
III.  CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)
PTF DEF PTF DEF
Citizen of This State 1 1 Incorporated or Principal Place 4 4
of Business In This State
Citizen of Another State 2 2 Incorporated and Principal Place 5 5
of Business In Another State
Citizen or Subject of a 3 3 Foreign Nation 6 6
Foreign Country
IV. NATURE OF SUIT (Place an “X” in One Box Only)
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
110 Insurance
PERSONAL INJURY PERSONAL INJURY
625 Drug Related Seizure 422 Appeal 28 USC 158 375 False Claims Act
120 Marine 310 Airplane 365 Personal Injury -of Property 21 USC 881 423 Withdrawal 376 Qui Tam (31 USC
130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC 157 3729 (a))
140 Negotiable Instrument Liability 367 Health Care/ 400 State Reapportionment
150 Recovery of Overpayment 320 Assault, Libel & Pharmaceutical
PROPERTY RIGHTS
410 Antitrust
& Enforcement of Judgment Slander Personal Injury 820 Copyrights 430 Banks and Banking
151 Medicare Act 330 Federal Employers’ Product Liability 830 Patent 450 Commerce
152 Recovery of Defaulted Liability 368 Asbestos Personal 840 Trademark 460 Deportation
Student Loans 340 Marine Injury Product 470 Racketeer Influenced and
345 Marine Product Liability
LABOR SOCIAL SECURITY
Corrupt Organizations
(Excludes Veterans)
153 Recovery of
Liability
PERSONAL PROPERTY
710 Fair Labor Standards 861 HIA (1395ff) 480 Consumer Credit
Veteran’s Benefits 350 Motor Vehicle 370 Other Fraud Act 862 Black Lung (923) 490 Cable/Sat TV
160 Stockholders’ Suits 355 Motor Vehicle 371 Truth in Lending 720 Labor/Management 863 DIWC/DIWW (405(g)) 850 Securities/Commodities/
190 Other Contract Product Liability 380 Other Personal Relations 864 SSID Title XVI Exchange
195 Contract Product Liability 360 Other Personal Property Damage 740 Railway Labor Act 865 RSI (405(g)) 890 Other Statutory Actions
196 Franchise Injury 385 Property Damage 751 Family and Medical 891 Agricultural Acts
362 Personal Injury ­Product Liability Leave Act 893 Environmental Matters
Medical Malpractice 790 Other Labor Litigation 895 Freedom of Information
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS
791 Employee Retirement
FEDERAL TAX SUITS
Act
210 Land Condemnation 440 Other Civil Rights 510 Motions to Vacate Income Security Act 870 Taxes (U.S. Plaintiff 896 Arbitration
220 Foreclosure 441 Voting Sentence or Defendant) 899 Administrative Procedure
230 Rent Lease & Ejectment 442 Employment
Habeas Corpus:
871 IRS—Third Party Act/Review or Appeal of
240 Torts to Land 443 Housing/ 530 General 26 USC 7609 Agency Decision
245 Tort Product Liability Accommodations 535 Death Penalty 950 Constitutionality of
290 All Other Real Property 445 Amer. w/Disabilities 540 Mandamus & Other
IMMIGRATION
State Statutes
Employment 550 Civil Rights
462  Naturalization  Application
446 Amer. w/Disabilities
555 Prison Condition 463 Habeas Corpus ­
Other 560 Civil Detainee ­Alien Detainee
448 Education Conditions of (Prisoner Petition)
Confinement 465 Other Immigration
Actions
V. ORIGIN (Place an “X” in One Box Only)
Multidistrict
Multidistrict
Transferred from
6 Litigation-
1 Original 2 Removed from 3 Remanded from 4 Reinstated or 5
8 Litigation -
Proceeding State Court Appellate Court Reopened
     Transfer
Direct File
Another District
(specify)
VI. CAUSE OF ACTION (Enter U.S. Civil Statute under which you are	 VII.  Previous Bankruptcy Matters (For nature of suit 422 and 423, enter the case
filing and write a brief statement of cause.)	 number and judge for any associated bankruptcy matter previously adjudicated by a judge of
this Court. Use a separate attachment if necessary.)
VIII. REQUESTED IN
CHECK IF THIS IS A CLASS ACTION
DEMAND $
CHECK YES only if demanded in complaint:
UNDER RULE 23, F.R.Cv.P.
COMPLAINT:
Yes No
JURY DEMAND:
(See instructions):
IX. RELATED CASE(S)
IF ANY
JUDGE DOCKET NUMBER
X. This case (check one box) Is not a refiling of a previously dismissed action is a refiling of case number previously dismissed by Judge
DATE SIGNATURE OF ATTORNEY OF RECORD

INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44
Authority For Civil Cover Sheet
The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law,
except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of
Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney
filing a case should complete the form as follows:
I. (a)  Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the
full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both
name and title.
(b)  County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the time of
filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of  filing. (NOTE: In land condemnation cases, the
county of residence of the "defendant" is the location of the tract of land involved.)
(c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an  attachment, noting in this
section "(see attachment)".
II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X" in one of
the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.
United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are  included here.
United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box.
Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment to the Constitution,
an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box 1 or 2 should be
marked.
Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship of the
different parties must be checked. (See Section III below; NOTE: federal question actions take  precedence over diversity cases.)
III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this section
for each principal party.
IV. Nature of Suit. Place an "X" in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, is sufficient
to enable the deputy clerk or the statistical clerk(s) in the Administrative Office to determine the nature of suit. If the cause fits more than one nature of suit, select the
most definitive.
V. Origin. Place an "X" in one of the six boxes.
Original Proceedings. (1) Cases which originate in the United States district courts.
Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. When the petition for
removal is granted, check this box.
Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date.
Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date.
Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistrict litigation
transfers.
Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407. When this box is
checked, do not check (5) above.
VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes
unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service
VII. Previous Bankruptcy Matters For nature of suit 422 and 423 enter the case number and judge for any associated bankruptcy matter previously adjudicated
by a judge of this court. Use a separate attachment if necessary.
VIII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the
actual dollar amount being demanded or indicate other demand, such as a preliminary injunction Jury Demand. Check the appropriate box to indicate whether or not a
jury is being demanded.
IX. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket numbers and the
corresponding judge names for such cases.
X. Refiling Information. Place an "X" in one of the two boxes indicating if the case is or is not a refilling of a previously dismissed action. If it is a refiling of a
previously dismissed action, insert the case number and judge.
Date and Attorney Signature. Date and sign the civil cover sheet.
Rev. 1 - 04/13/2016

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 1 of 10 PageID #:1 

IN THE UNITED STATES DISTRICT COURT
 
NORTHERN DISTRICT OF ILLINOIS
 

SECURITIES AND EXCHANGE 
COMMISSION, 

COMPLAINT 
PLAINTIFF, 

v. 
Case No.: 

LUCITA A. ZAMORAS, 
Judge: 

DEFENDANT. 

Plaintiff, Securities and Exchange Commission (the “Commission”), for its Complaint 

against Defendant Lucita A. Zamoras (“Zamoras” or “Defendant”) alleges as follows: 

INTRODUCTION 

1. This matter involves an offering and affinity fraud orchestrated by Lucita A. 

Zamoras.  Zamoras solicited investors for a fraudulent promissory note program resulting in the 

misappropriation of investor funds.  

2. From at least October 2009 through December 2013, Zamoras raised 

approximately $727,049 from at least six investors by engaging in a scheme that encouraged 

investors to transfer their retirement funds, which had been invested in stable, interest bearing 

annuities, to self-directed IRA accounts in order to issue promissory notes directly to Zamoras. 

3. Zamoras led clients to believe that the promissory notes were safe long-term 

investments that would generate a higher return than they had been getting from Zamoras’ 

insurance products.  However, once investors purchased the promissory notes from Zamoras, 



  

       

   

     

   

 

 

 

  

     

  

 

   

 

  

 

 

  

   

  

  

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 2 of 10 PageID #:2 

Zamoras squandered the funds, using them for gambling and personal expenses. She never 

invested the funds in any entity or undertaking designed to provide a return to her victims. 

4. In perpetrating her fraud, Zamoras preyed upon the Filipino community living in 

and around the Chicago area.  Originally from the Philippines herself, she sought to earn her 

victims’ trust by conveying a sense of shared experience.  Upon gaining their trust, she used that 

trust to gain access to their funds, giving her victims the misimpression that the funds would be 

invested in stable, interest-generating investments, all the while knowing that she intended to use 

the funds to feed her gambling habit.  

5. As a result of her fraud, Zamoras has betrayed her customers’ trust, has lost her 

victims’ life savings, and has violated the federal securities laws by perpetrating an unlawful 

scheme and course of business to defraud others in the offer, purchase or sale of securities. 

JURISDICTION AND VENUE 

6. This Court has subject matter jurisdiction by authority of Sections 20 and 22 of 

the Securities Act of 1933 (the “Securities Act”) [15 U.S.C. §§ 77t and 77v], and Sections 21 and 

27 of the Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. §§ 78u and 78aa]. 

7. Defendant, directly and indirectly, singly and in concert, has made use of the 

means and instrumentalities of interstate commerce and the mails in connection with the 

transactions, acts and courses of business alleged herein, certain of which have occurred within 

the Northern District of Illinois. 

8. Venue for this action is proper in the Northern District of Illinois under Section 

22(a) of the Securities Act [15 U.S.C. § 77v(a)], and under Section 27 of the Exchange Act [15 

U.S.C. § 78aa], because certain of the transactions, acts, practices, and courses of business 

2
 



  

  

  

    

  

  

  

  

  

     

 

 

       

 

  

     

 

 

    

    

  

  

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 3 of 10 PageID #:3 

alleged in this Complaint took place in this district and because the Defendant resides in and 

transacts business in this district. 

9. Defendant, unless restrained and enjoined by this Court, will continue to engage 

in the transactions, acts, practices, and courses of business alleged herein and in transactions, 

acts, practices, and courses of business of similar purport and object. 

10. Defendant’s conduct took place in connection with the offer, purchase and/or sale 

of securities. 

DEFENDANT AND RELATED ENTITY 

11. Lucita A. Zamoras, age 53, is a resident of Niles, Illinois.  Zamoras is the 

founder and sole member of First Fidelity, LLC.  Zamoras has not been registered with the 

Commission in any capacity.  

12. First Fidelity, LLC (“First Fidelity”), is an Illinois limited liability company 

located in Niles, Illinois.  First Fidelity purports to help clients achieve their long-term financial 

goals by offering financial products and services, primarily various insurance products.  First 

Fidelity has never been registered with the Commission in any capacity. 

STATEMENT OF FACTS
 

Background
 

13. Zamoras opened First Fidelity in 2000 purportedly to help clients pursue their 

long-term financial goals by providing retirement, insurance and tax services. 

14. The First Fidelity website states that Zamoras strives to help her clients protect 

their assets and secure their well-earned retirement in all economic environments.  First Fidelity 

3
 



  

  

    

    

   

      

 

   

   

    

    

            

 

  

   

  

     

  

  

  

       

     

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 4 of 10 PageID #:4 

primarily does this through the sale of insurance products such as fixed annuities, indexed 

annuities, and individual variable and term life insurance products.  

15. First Fidelity clients are primarily located in the suburban Chicago area. First 

Fidelity’s only other employee was a receptionist/office manager who did not meet with clients. 

16. Zamoras is originally from the Philippines and has built a clientele that includes 

primarily elderly Filipino-Americans. Her grasp of the Filipino language and culture allowed her 

to win the trust of numerous clients, forming an especially strong bond with those who purchased 

the fraudulent promissory notes in this matter.  

17. Zamoras met many of her clients through free lunch investment seminars 

sponsored by First Fidelity. Zamoras’ investors are unsophisticated with little prior investment 

experience.  Many are first generation immigrants who have worked their entire life to save for 

their retirement. 

Zamoras’ Scheme to Defraud 

18. Between 2009 and 2013, Zamoras encouraged several of her clients to open 

accounts with a nontraditional individual retirement account (“IRA”) custodian, American 

Pension Services, LLC (“APS”).   

19. Most IRA custodians are banks or broker-dealers that limit the holdings in IRA 

accounts to firm-approved traditional investments.  In contrast, APS, which formerly was a self-

directed IRA custodian, gives account owners the freedom to invest in anything consistent with 

applicable IRS rules and regulations, including promissory notes.  

20. The clients that purchased promissory notes from Zamoras had not heard of APS 

until Zamoras made the recommendation that they roll their retirement funds over to APS. 

4
 



  

     

  

     

 

 

 

    

 

      

    

     

     

   

  

   

     

 

  

   

 

 

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 5 of 10 PageID #:5 

21. Zamoras then encouraged her clients to transfer their retirement funds, previously 

invested in stable insurance products through First Fidelity, to APS.  

22. Trusting Zamoras, many of the clients followed her recommendation, transferring 

their former employer sponsored 401(k) plans, held in fixed annuity products at First Fidelity, to 

APS, often incurring a surrender charge on the sale.  

23. Clients were then encouraged to invest their retirement funds at APS in unsecured 

promissory notes issued by Zamoras.  The promissory notes are between the client and Zamoras 

personally.  

24. The promissory notes are all balloon notes with maturities of at least five years, 

and most coming due after ten years.  Most notes carry an interest rate of between 3.5 - 5% per 

annum with all interest due in a lump sum payment at maturity. 

25. All of the investor promissory notes are unsecured.  Zamoras dictated the terms of 

the notes and failed to provide investors with any offering documents or other adequate 

disclosure as to the true nature of the transaction, taking advantage of her clients’ lack of 

sophistication and experience in investing. 

26. Investors were led to believe that the promissory notes were a safe, secure 

investment that would earn an above market interest rate.  

27. In perpetrating her scheme, Zamoras took advantage of her clients’ lack of 

investing experience, as none of them understood how Zamoras would invest their funds to earn 

the 3.5 -5% guaranteed return, but nevertheless trusted her and went along with her 

recommendation.  

5
 



  

 

    

    

  

    

  

   

  

      

  

 

  

  

  

    

 

  

   

    

       

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 6 of 10 PageID #:6 

28. Indeed, several of the investors actually understood that their funds would remain 

at APS and would safely earn the promised interest rate, not appreciating what a self-directed 

IRA account was and that APS was not an insurance company or other interest-paying entity. 

29. After signing the promissory notes, Zamoras instructed APS to wire investor 

funds to her personal accounts at various national banks. Zamoras is the only authorized signor 

on those accounts.  

30. Once the funds arrived in her personal account, Zamoras used the investor funds 

for gambling or to pay her personal expenses.  

31. Between October 2011 and March 2013, Zamoras withdrew over $1 million from 

her bank accounts at various casinos.  Zamoras’ investors were a substantial source of her 

gambling funds. 

32. Although Zamoras lost all investor funds, the clients continued to receive 

statements from APS showing the promissory notes held in the account at their original face 

value.  This led the investors to believe that their funds were still safe and secure.  

33. Zamoras led her investors to understand that their funds were in a safe, secure 

investment program and that APS would hold the funds.  She did not tell investors she planned to 

immediately transfer their funds to her personal account and use their money for personal 

expenses and gambling. Investors would not have invested with Zamoras had they known she 

was simply going to gamble with their retirement funds. 

34. Little, if any, investor funds were ever invested by Zamoras. 

6
 



  

     

  

 

  

   

    

 
 

  
 

  

  

   

   

 

 

   

  

 

 
  

  
 

  

  

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 7 of 10 PageID #:7 

35. Investors told Zamoras that their funds were essential to fund their retirement. 

Many investors told Zamoras that these funds represented their life savings and they could not 

afford to take any risk.  

36. As described above, Zamoras’s investors are all unsophisticated investors with 

little prior investment experience.  Many are first generation immigrants who have worked their 

entire life to save for their retirement and are now left with nothing. 

COUNT I
 
EMPLOYMENT OF A DEVICE, SCHEME OR ARTIFICE TO DEFRAUD
 

Violation of Section 17(a)(1) of the Securities Act [15 U.S.C. § 77q(a)(1)]
 

37. The Commission realleges and incorporates by reference the allegations contained 

in paragraphs 1 through 36 above. 

38. Defendant Zamoras, by engaging in conduct described above, directly or 

indirectly, in the offer or sale of securities, by the use of the means or instruments of 

transportation or communication in interstate commerce or by use of the mails, with scienter, 

employed devices, schemes, or artifices to defraud. 

39. By reason of the foregoing, Zamoras, directly or indirectly, violated, and unless 

restrained and enjoined by this Court, will continue to violate Section 17(a)(1) of the Securities 

Act [15 U.S.C. § 77q(a)(1)]. 

COUNT II
 
FRAUD IN THE OFFER OR SALE OF SECURITIES
 

Violations of Section 17(a)(3) of the Securities Act [15 U.S.C. § 77q(a)(3)]
 

40. The Commission realleges and incorporates by reference the allegations contained 

in paragraphs 1 through 36 above. 

7
 



  

    

 

 

 

    

 

 

 
   

   
 

 
  

  

       

   

 

 

  

   

   

  

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 8 of 10 PageID #:8 

41. Defendant Zamoras, by engaging in the conduct described above, directly and 

indirectly, in the offer and sale of securities, by the use of the means or instruments of 

transportation or communication in interstate commerce or by use of the mails, engaged in 

transactions, practices, or courses of business which operate or would operate as a fraud or deceit 

upon the purchaser. 

42. By reason of the foregoing, Zamoras, directly or indirectly, violated, and unless 

restrained and enjoined will continue to violate, Section 17(a)(3) of the Securities Act [15 U.S.C. 

§ 77q(a)(3)]. 

COUNT III
 
FRAUD IN CONNECTION WITH THE PURCHASE OR SALE OF SECURITIES
 

Violations of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5(a) and
 
(c) thereunder [17 C.F.R. § 240.10b-5(a) and (c)]
 

43. The Commission realleges and incorporates by reference the allegations contained 

in paragraphs 1 through 36 above. 

44. Defendant Zamoras, by engaging in the conduct described above, directly or 

indirectly, by the use of means or instrumentalities of interstate commerce or use of the mails, in 

connection with the purchase or sale of securities, with scienter, employed devices, schemes, or 

artifices to defraud, or engaged in acts, practices, or courses of business that operated or would 

operate as a fraud and deceit upon other persons. 

45. By reason of the foregoing, Zamoras violated, and unless restrained and enjoined 

will continue to violate Section 10(b) of the Exchange Act [15 U.S.C. §78j(b)] and Rule 10b-5(a) 

and (c) thereunder [17 C.F.R. § 240.10b-5(a) and (c)]. 

8
 



  

 

   

 

     

 

 

  

  

 

 

    

    

 

    

  

 

   

 

 

  

 

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 9 of 10 PageID #:9 

RELIEF REQUESTED 

WHEREFORE, the Commission respectfully requests that this Court: 

I. 

Issue findings of fact and conclusions of law that Defendant committed the violations 

charged herein. 

II. 

Issue in a form consistent with Rule 65(d) of the Federal Rules of Civil Procedure orders 

that permanently enjoin Defendant and her officers, agents, servants, employees, attorneys, and 

accountants, and those persons in active concert or participation with any of them, who receive 

actual notice of the order by personal service or otherwise, and each of them, from engaging in 

transactions, acts, practices, and courses of business described herein, and from engaging in 

conduct of similar purport and object in violation of Section 17(a)(1) and (3) of the Securities 

Act, Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) thereunder. 

III. 

Enter an order directing Defendant to pay civil money penalties pursuant to Section 20(d) 

of the Securities Act and Section 21(d)(3) of the Exchange Act. 

IV. 

Enter an order directing Defendant to disgorge all ill-gotten gains received during the 

period of violative conduct and pay prejudgment interest on such ill-gotten gains. 

V. 

Retain jurisdiction of this action in accordance with the principles of equity and the 

Federal Rules of Civil Procedure in order to implement and carry out the terms of all orders and 

9
 



  

  

 

    
 

 
 
 
 

  
  

  
 

    
 

 
 

  
 

 
   

  
 

 
 

  
 

 

Case: 1:17-cv-02528 Document #: 1 Filed: 04/03/17 Page 10 of 10 PageID #:10 

decrees that may be entered, or to entertain any suitable application or motion for additional 

relief within the jurisdiction of this Court. 

Dated: April 3, 2017. 

Respectfully submitted, 

/s/ Benjamin J. Hanauer 
Benjamin J. Hanauer 
[email protected] 
U.S. Securities & Exchange Commission 
175 West Jackson, Suite 1450 
Chicago, IL 60604 
312-353-8642 

Daniel J. Wadley (pro hac vice pending)
 
[email protected]
 
Amy J. Oliver (pro hac vice pending)
 
[email protected]
 
Paul N. Feindt (pro hac vice pending)
 
[email protected]
 
U.S. Securities & Exchange Commission 
351 So. West Temple, Suite 6.100 
Salt Lake City, Utah 84101 
Tel.  801-524-5796 

10
 

mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]


    
    

     
       

   

  
 

   
   

   

     
      

                       
             

     

                    
   

         
     

    
     

                
                 
                     
         
          
             
         
            

        
            

              
              

            
                 
              
            

         
       

                
            
            
          
           
         
    

 
      

       
  

 
      

         
            

     
  

   
 

   
 

   
    

    
   

   

    
 

  

     
 

  

               
  

 
 

  
   

 
   

 
   

 

 
 

 

  
    

 

ILND 44 (Rev. 07/13/16)	 CIVIL COVER SHEET Case: 1:17-cv-02528 Document #: 1-1 Filed: 04/03/17 Page 1 of 2 PageID #:11 

The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law,  except as 
provided by local rules of court.  This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the 
purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.) 

I. (a) PLAINTIFFS DEFENDANTS 

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant 
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY) 

NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF 
THE TRACT OF LAND INVOLVED. 

(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known) 

II. BASIS OF JURISDICTION (Place an “X” in One Box Only) 

1 U.S. Government 3 Federal Question 
Plaintiff (U.S. Government Not a Party) 

2 U.S. Government 4 Diversity 
Defendant (Indicate Citizenship of Parties in Item III) 

III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff 
(For Diversity Cases Only) and One Box for Defendant) 

PTF DEF PTF DEF 
Citizen of This State 1 1 Incorporated or Principal Place 4 4 

of Business In This State 

Citizen of Another State 2 2 Incorporated and Principal Place 5 5 
of Business In Another State 

Citizen or Subject of a 3 3 Foreign Nation 6 6 
Foreign Country 

IV. NATURE OF SUIT (Place an “X” in One Box Only) 
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES 

110 Insurance PERSONAL INJURY PERSONAL INJURY 625 Drug Related Seizure 422 Appeal 28 USC 158 375 False Claims Act 
120 Marine 310 Airplane 365 Personal Injury - of Property 21 USC 881 423 Withdrawal 376 Qui Tam (31 USC 
130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC 157 3729 (a)) 
140 Negotiable Instrument Liability 367 Health Care/ 400 State Reapportionment 
150 Recovery of Overpayment 320 Assault, Libel & Pharmaceutical PROPERTY RIGHTS 410 Antitrust 

& Enforcement of Judgment Slander Personal Injury 820 Copyrights 430 Banks and Banking 
151 Medicare Act 330 Federal Employers’ Product Liability 830 Patent 450 Commerce 
152 Recovery of Defaulted Liability 368 Asbestos Personal 840 Trademark 460 Deportation 

Student Loans 340 Marine Injury Product 470 Racketeer Influenced and 
345 Marine Product Liability LABOR SOCIAL SECURITY Corrupt Organizations (Excludes Veterans) 

153 Recovery of Liability PERSONAL PROPERTY 710 Fair Labor Standards 861 HIA (1395ff) 480 Consumer Credit 
Veteran’s Benefits 350 Motor Vehicle 370 Other Fraud Act 862 Black Lung (923) 490 Cable/Sat TV 

160 Stockholders’ Suits 355 Motor Vehicle 371 Truth in Lending 720 Labor/Management 863 DIWC/DIWW (405(g)) 850 Securities/Commodities/ 
190 Other Contract Product Liability 380 Other Personal Relations 864 SSID Title XVI Exchange 
195 Contract Product Liability 360 Other Personal Property Damage 740 Railway Labor Act 865 RSI (405(g)) 890 Other Statutory Actions 
196 Franchise Injury 385 Property Damage 751 Family and Medical 891 Agricultural Acts 

362 Personal Injury ­ Product Liability Leave Act 893 Environmental Matters 
Medical Malpractice 790 Other Labor Litigation 895 Freedom of Information 

REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS 791 Employee Retirement FEDERAL TAX SUITS Act 
210 Land Condemnation 440 Other Civil Rights 510 Motions to Vacate Income Security Act 870 Taxes (U.S. Plaintiff 896 Arbitration 
220 Foreclosure 441 Voting Sentence or Defendant) 899 Administrative Procedure 
230 Rent Lease & Ejectment 442 Employment Habeas Corpus: 871 IRS—Third Party Act/Review or Appeal of 
240 Torts to Land 443 Housing/ 530 General 26 USC 7609 Agency Decision 
245 Tort Product Liability Accommodations 535 Death Penalty 950 Constitutionality of 
290 All Other Real Property 445 Amer. w/Disabilities 540 Mandamus & Other IMMIGRATION State Statutes 

Employment 550 Civil Rights 462 Naturalization Application 
446 Amer. w/Disabilities 555 Prison Condition 463 Habeas Corpus ­

Other 560 Civil Detainee ­ Alien Detainee 
448 Education Conditions of (Prisoner Petition) 

Confinement 465 Other Immigration 
Actions 

V. ORIGIN (Place an “X” in One Box Only) Multidistrict MultidistrictTransferred from 
6 Litigation-1 Original 2 Removed from 3 Remanded from 4 Reinstated or 5 8 Litigation -

Proceeding State Court Appellate Court Reopened      Transfer Direct File 
Another District 
(specify) 

VI. CAUSE OF ACTION (Enter U.S. Civil Statute under which you are	 VII. Previous Bankruptcy Matters (For nature of suit 422 and 423, enter the case 
filing and write a brief statement of cause.)	 number and judge for any associated bankruptcy matter previously adjudicated by a judge of 

this Court. Use a separate attachment if necessary.) 

VIII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION DEMAND $	 CHECK YES only if demanded in complaint: 
UNDER RULE 23, F.R.Cv.P. COMPLAINT: 

Yes NoJURY DEMAND: 
(See instructions): IX. RELATED CASE(S) 

IF ANY JUDGE DOCKET NUMBER 

X. This case (check one box) Is not a refiling of a previously dismissed action is a refiling of case number previously dismissed by Judge 
DATE SIGNATURE OF ATTORNEY OF RECORD 



      

    

           
                 

                    
      

               
              

   

                
             
            

               
    

            
        

            

           

              
                  

   

                 
            

              
    

             
          

   

         

      

             
      

             

          

             
   

             
       

       
          

           
       

            
             

     

          
  

                 
   

  

Case: 1:17-cv-02528 Document #: 1-1 Filed: 04/03/17 Page 2 of 2 PageID #:12 
INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44 

Authority For Civil Cover Sheet 

The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, 
except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of 
Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney 
filing a case should complete the form as follows: 

I. (a)  Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the 
full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both 
name and title. 

(b)  County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the time of 
filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condemnation cases, the 
county of residence of the "defendant" is the location of the tract of land involved.) 

(c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an  attachment, noting in this 
section "(see attachment)". 

II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X" in one of 
the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below. 

United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here. 

United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box. 

Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment to the Constitution, 
an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box 1 or 2 should be 
marked. 

Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship of the 
different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity cases.) 

III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this section 
for each principal party. 

IV. Nature of Suit. Place an "X" in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, is sufficient 
to enable the deputy clerk or the statistical clerk(s) in the Administrative Office to determine the nature of suit. If the cause fits more than one nature of suit, select the 
most definitive. 

V. Origin. Place an "X" in one of the six boxes. 

Original Proceedings. (1) Cases which originate in the United States district courts. 

Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. When the petition for 
removal is granted, check this box. 

Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date. 

Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date. 

Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistrict litigation 
transfers. 

Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407. When this box is 
checked, do not check (5) above. 

VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes 
unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service 

VII. Previous Bankruptcy Matters For nature of suit 422 and 423 enter the case number and judge for any associated bankruptcy matter previously adjudicated 
by a judge of this court. Use a separate attachment if necessary. 

VIII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the 
actual dollar amount being demanded or indicate other demand, such as a preliminary injunction Jury Demand. Check the appropriate box to indicate whether or not a 
jury is being demanded. 

IX. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket numbers and the 
corresponding judge names for such cases. 

X. Refiling Information. Place an "X" in one of the two boxes indicating if the case is or is not a refilling of a previously dismissed action. If it is a refiling of a 
previously dismissed action, insert the case number and judge. 

Date and Attorney Signature. Date and sign the civil cover sheet. 
Rev. 1 - 04/13/2016 


	County of Residence of First Listed Plaintiff: 
	County of Residence of First Listed Defendant: Cook County
	US Government: 1
	3 Federal Question: Off
	4: Off
	of Business In This State: 1_3
	of Business In Another State: 2_2
	3: Off
	3_2: Off
	6: Off
	6_2: Off
	110 Insurance: Off
	120 Marine: Off
	130 Miller Act: Off
	140 Negotiable Instrument: Off
	150 Recovery of Overpayment: Off
	151 Medicare Act: Off
	152 Recovery of Defaulted: Off
	153 Recovery of Overpayment: Off
	160 Stockholders Suits: Off
	190 Other Contract: Off
	195 Contract Product Liability: Off
	196 Franchise: Off
	625 Drug Related Seizure: Off
	690 Other: Off
	422 Appeal 28 USC 158: Off
	423 Withdrawal: Off
	310 Airplane: Off
	315 Airplane Product: Off
	320 Assault Libel: Off
	330 Federal Employers: Off
	340 Marine: Off
	345 Marine Product: Off
	350 Motor Vehicle: Off
	355 Motor Vehicle: Off
	360 Other Personal: Off
	362 Personal Injury: Off
	365 Personal Injury: Off
	367 Health Care: Off
	368 Asbestos Personal: Off
	undefined: Off
	undefined_2: Off
	undefined_3: Off
	370 Other Fraud: Off
	371 Truth in Lending: Off
	380 Other Personal: Off
	385 Property Damage: Off
	undefined_4: Off
	undefined_5: Off
	undefined_6: Off
	undefined_7: Off
	undefined_8: Off
	710 Fair Labor Standards: Off
	720 LaborManagement: Off
	740 Railway Labor Act: Off
	751 Family and Medical: Off
	790 Other Labor Litigation: Off
	791 Employee Retirement: Off
	210 Land Condemnation: Off
	220 Foreclosure: Off
	230 Rent Lease  Ejectment: Off
	240 Torts to Land: Off
	245 Tort Product Liability: Off
	290 All Other Real Property: Off
	440 Other Civil Rights: Off
	441 Voting: Off
	442 Employment: Off
	443 Housing: Off
	445 Amer wDisabilities: Off
	446 Amer wDisabilities: Off
	448 Education: Off
	870 Taxes US Plaintiff: Off
	871 IRSThird Party: Off
	375 False Claims Act: Off
	376 Qui Tam 31 USC: Off
	400 State Reapportionment: Off
	410 Antitrust: Off
	430 Banks and Banking: Off
	450 Commerce: Off
	460 Deportation: Off
	470 Racketeer Influenced and: Off
	480 Consumer Credit: Off
	490 CableSat TV: Off
	850 SecuritiesCommodities: On
	890 Other Statutory Actions: Off
	891 Agricultural Acts: Off
	893 Environmental Matters: Off
	895 Freedom of Information: Off
	896 Arbitration: Off
	899 Administrative Procedure: Off
	950 Constitutionality of: Off
	510 Motions to Vacate: Off
	530 General: Off
	535 Death Penalty: Off
	540 Mandamus  Other: Off
	550 Civil Rights: Off
	555 Prison Condition: Off
	560 Civil Detainee: Off
	462 Naturalization Application: Off
	463 Habeas Corpus: Off
	465 Other Immigration: Off
	1 Original: On
	2 Removed from: Off
	3_3: Off
	4_4: Off
	VI  CAUSE OF ACTION Enter US Civil Statute under which you are filing and write a brief statement of cause: 15 U.S.C. §§ 77t ,77v, 78u and 78aa Securtities Fraud
	CHECK IF THIS IS A CLASS ACTION: Off
	JUDGE: 
	DOCKET NUMBER: 
	Is not a refiling of a previously dismissed action: On
	is a refiling of case number: Off
	undefined_9: 
	previously dismissed by Judge: 
	Text9: 04/03/2017
	Text10: /s/ Benjamin Hanauer
	Plaintiffs: U.S. Securities and Exchange Commission
	Defendants: Lucita A. Zamoras
	Attorneys1: Benjamin J. Hanauer, Daniel J. Wadley, Amy J. Oliver, Paul Feindt, 
351 S. West Temple, Suite 6.100, Salt Lake City, UT 84101 801-524-5976
	Attorneys2: Phillip A. Turner, Law Offices of Phillip A. Turner
115 South LaSalle Street, Suite 2600, Chicago, IL 60603
312-899-0009
	VII: 
	 Previous Bankruptcy Matters: 

	Demand: 
	Yes: Off
	5trans: Off
	6_3: Off
	No2: On
	MDL-trans: Off