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For Immediate Release

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

Securities Division Wins Judgment for Restitution and Fines of Nearly $9.5 Million in Hedge Fund Scam

BALTIMORE, MD ( September 21, 2009) - Attorney General Douglas F. Gansler announced today that the Securities Division has won a $9.49 million dollar judgment against John Henry Williams in Prince Georges’ County Circuit Court. The Securities Division had charged Williams with violating Maryland securities laws by selling unregistered securities, acting as an unregistered broker-dealer, broker-dealer agent, investment adviser and investment adviser representative and engaging in fraud in the offer and sale of securities and investment advice. In February of 2007, the Securities Division and Williams entered into a consent order that found that Williams committed securities fraud. The order also appointed a receiver and included a court ordered permanent bar from the securities and investment advisory business against Williams and his companies.

Williams and his companies, LaJon Corporation, LaJon Capital Management, LLC, LaJon Capital Advisors, LLC and LaJon Capital Fund, LP, used free lunch seminars to lure investors into his programs, raising over $9 million from more than 150 investors mostly from Prince George’s and Montgomery counties. Victims were told that their investments were profitable when, in fact, most of their money was lost in unsuccessful trading strategies and management fees.

“Although Williams has filed for personal bankruptcy, the order for restitution to investors and the fines will survive the bankruptcy as a result of the Securities Division’s action,” said Attorney General Gansler. “This will allow a claim for restitution to investors against any future assets that Williams may obtain.”

For additional information concerning the receivership, investors should contact Alan Levenstein at 301-459-8200 or http://lajonreceiver.com. The order can be found at http://www.oag.state.md.us/Securities/Actions/2009/WilliamsPGCtyOrder.pdf

Attorney General Gansler is reminding investors to call the Securities Division at 410-576-6360 before they invest to find out whether their investment adviser, broker and securities are registered. Even when an investment program looks reasonable, and friends and family trust the promoter, it’s wise to take a few minutes to verify the status of the promoters.

   

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