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For Immediate Release
February 22, 2007

Media Contact:
Raquel Guillory, 410-576-6357
rguillory@oag.state.md.us

Attorney General Gansler Shuts Down Multimillion Dollar Hedge Fund

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.

“Mr. Williams and his companies must be stopped from soliciting investors to prevent further harm and additional victims,” said Attorney General Gansler. “We filed this action to put an immediate halt to this company’s fraudulent activities. By seeking a receiver, we can immediately start marshaling funds for the benefit of defrauded investors.”

According to the order (http://www.oag.state.md.us/Securities/permanent_injunction_Ord.pdf), issued by Circuit Court Judge Ronald D. Schiff, all assets of the companies are frozen and attorney Richard Finci has been appointed as the receiver. Additional information for investors is available by calling 410-576-7649. Before investing, citizens can call the Securities Division at 410-576-6360 to find out whether their investment adviser, broker and securities are registered.

In making today’s announcement, Attorney General Gansler thanked Assistant Attorneys General Katharine Weiskittel and Lucy Cardwell, and financial fraud examiner Frank Barlow for their work on the case.

   

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