Attorney General Gansler Shuts Down Multimillion Dollar Hedge Fund

oag.state.md.us, Mar 23, 2007

Maryland Attorney General Douglas F. Gansler announced today that his Securities Division filed a complaint (http://www.oag.state.md.us/Securities/ComplaintMel.pdf) against John Henry Williams and his companies LaJon Corporation, LaJon Capital Management, LLC, LaJon Capital Advisors, LLC and LaJon Capital Fund, LP. Filed in Prince George’s County Circuit Court, the complaint charges the defendants with violating Maryland’s securities laws by engaging in fraud in the offer and sale of securities and investment advice, selling unregistered securities, and acting as an unregistered broker-dealer, broker-dealer agent, investment adviser and investment adviser representative. In addition to the complaint, the Attorney General’s Office filed a consent motion (http://www.oag.state.md.us/Securities/permanent_injuction_mot.pdf) that permanently prohibits the defendants from working in the securities and investment advisory business and appoints a receiver to take control of the company and its assets. The Complaint also seeks an asset freeze, fines, and restitution from Williams and his companies.

The complaint alleges that Williams and his companies used free lunch seminars to lure investors to his programs, raising over $9 million from more than 150 investors mostly from Prince George’s and Montgomery Counties. After investing, investors were told that their investments were profitable when in fact most of their money was lost in unsuccessful trading strategies and management fees. Read more at oag.state.md.us.