This margin trading was not intended to and did not benefit the AFC customers. The complaint further alleges that unbeknownst to and without the authorization of the customers, Defendants Lohmeier, Enterprise, and Townsend placed the AFC customers' mutual funds into margin and other accounts where the AFC customers' securities served as collateral for leveraged margin trading, including options trading and short selling, that was intended to benefit Enterprise's principals, Lohmeier and Townsend, and other Enterprise customers. Townsend (“Townsend”) fraudulently induced hundreds of customers of Advisory Financial Consultants ("AFC"), a registered broker-dealer, to transfer custody of approximately $49 million in mutual funds to Enterprise. The Commission’s complaint, filed on March 3, 2008, alleges, among other things, that Defendants Lohmeier, Enterprise Trust Company (“Enterprise”) and Rebecca A. Lohmeier consented to the entry of the Order against him without admitting or denying the allegations in the Commission’s complaint. The Order permanently enjoins Lohmeier from violating the anti-fraud provisions of the federal securities laws in connection with the purchase and sale of securities. Lohmeier (“Lohmeier”), of Oak Brook, Illinois, pursuant to his consent. On July 2, 2008, the Securities and Exchange Commission obtained an Order of Permanent Injunction (“Order”) from the United States District Court for the Northern District of Illinois against John H. ENTERPRISE TRUST COMPANY, ET AL, Case No. Securities and Exchange Commission LITIGATION RELEASE NO.
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