DeGeorge Financial Makes Announcement.CHESHIRE, Conn.--(BUSINESS WIRE)--Nov. 13, 1997--DeGeorge Financial Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS See NetWare Management System. : DEGE) announced today that it had reached a settlement with the Securities and Exchange Commission, closing an investigation that has lasted more than two years and cost the Company in excess of $600,000 in legal fees and related expenses. Under the settlement, the Company consented to a cease and desist order An order issued by an Administrative Agency or a court proscribing a person or a business entity from continuing a particular course of conduct. The force and effect of a cease and desist order are similar to those of an Injunction issued by a court. in an SEC administrative proceeding An administrative proceeding is a non-judicial determination of fault or guilt and may include in some cases penalties of various forms. A "Captain's Mast", held by a commanding officer of a warship is one such proceeding. without admitting or denying the SEC's findings. In addition, the Company has agreed to hire a consultant acceptable to the staff of the SEC to advise it with respect to improving procedures relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the approval, recording and disclosure of related party transactions. The Company has also agreed to adopt the recommendations of the consultant unless such recommendations are impractical or unduly burdersome. The Company is not paying any fine or civil penalty under the settlement. Peter R. DeGeorge, Chairman of the Board and Chief Executive Officer of the Company separately settled with the SEC without admitting or denying the SEC's allegations. He agreed to the entry of an injunction against him prohibiting future violations of the federal securities laws and further agreed to the payment of a civil penalty of $50,000 and a payment in the nature of restitution to the Company of $248,000 (which includes $44,000 of prejudgement pre·judge tr.v. pre·judged, pre·judg·ing, pre·judg·es To judge beforehand without possessing adequate evidence. pre·judg interest). DeGeorge commented, "From the beginning we cooperated fully with the SEC investigation. I believe that I needed to settle with the SEC, neither admitting nor denying their allegations, in order the relieve the Company from further expense, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and distraction. The investigation has already been very costly in money and management time. We are happy to be able to focus our full efforts on the Company's business." DeGeorge Financial Corp. arranges financing and is currently managing over $160 million in underwritten construction loans. It provides access to home ownership for people who lack a sufficient down payment or sufficient income to support the purchase of the home they desire through conventional mortgage programs. Through its packaging of financial services and customer support, the Company enables its customers to reduce the cost of home construction by eliminating the general contractor, the intent of which is to create an equity position that serves as the down payment for permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. upon the conclusion of the home construction process. CONTACT: DeGeorge Financial Corp. Jonathan K. Dodge, 212/371-9777 |
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