Perp Walk – Eric Majors
Perp: Eric R. Majors
Position: Chief Executive Officer
Place of Employment: Force Financial Systems Group, Inc.
Date: July 22, 2010
Mischief: From December 2002 through February 2005, Majors engaged in the fraudulent, unregistered public distribution of the common stock of Maximum Dynamics, Inc. (“Maximum”), to illegally raise capital for the company and to compensate himself. Majors issued millions of Maximum shares in the names of alleged consultants in Mexico using false consulting contracts and false Form S-8 registration statements. In reality, the individuals in Mexico sold their identities to Majors and did not know about the consulting contracts or the Maximum shares issued in their names. Majors deposited the shares in brokerage accounts that he controlled and used the proceeds from the sale of the shares to secretly pay himself, Maximum, and others. Majors also fraudulently certified Maximum’s periodic reports with the Commission under the SOX Act and knowingly caused false and misleading statements of material fact to be included in an application for registration filed by Maximum with the Commission.
Prison Time: 60 months
Judgment of Conviction: United States v. Eric Richfield Majors, Crim. Case No. 07-CR-00471., United States District Court for the District of Colorado. Guilt on one count of conspiracy to defraud the Securities and Exchange Commission in violation of Title 18, United States Code, Section 371
SEC Administrative Sanctions: Permanently enjoined from future violations of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Sarbanes-Oxley Act of 2002