COMPLAINT Oregon v. Morrissey et al.
From Wikisource
| COMPLAINT Oregon V. Morrissey et al. | Covenant Not to Execute - DCBS and Mary Morrissey→ |
| See also Living Enrichment Center: The 21st Century Church and The People of the State of California vs Sylvia Celeste Brown and Kensil Dalzell Brown |
 |
Wikipedia has more on: Mary Manin Morrissey. |
|
Wikipedia has more on: Living Enrichment Center. |
|
Wikipedia has more on: Edward Morrissey. |
 |
The contents of this page may violate Wikisource's copyright policy. The contents have been hidden and are being discussed at Possible copyright violations, where you may add your comments. |
IN THE CIRCUIT COURT OF THE STATE OF OREGON
FOR THE COUNTY OF MULTNOMAH
No. 0504-03509
PLAINTIFF'S COMPLAINT
For Securities Fraud and other Violations of Oregon Securities Laws under ORS 59.255 -- Civil Penalties, Injunctions, and Restitution
NOT SUBJECT TO MANDATORY ARBITRATION
MARY MANIN MORRISSEY, an individual; EDWARD P. MORRISSEY, an individual; THE LIVING ENRICHMENT CENTER, a non-profit religious organization, LIVING ENRICHMENT MINISTRIES, a non-profit corporation; NEW THOUGHT BROADCASTING, Inc.; and NEW THOUGHT BROADCASTING FOUNDATION, a non-profit religious organization,
Defendants
Plaintiff, State of Oregon, on relation of CORY STREISINGER, Director, Department of Consumer and Business Services, alleges that at all material times, the following is true.
SUMMARY
1. This action arises from a securities fraud resulting in loss of congregant loans and investments. Plaintiff brings this action to enjoin Defendants from committing further violations of the antifraud, registration, and licensing provisions of the Oregon Securities Laws, and to secure monetary relief for violations of these laws.
2. Between at least 1996 and 2004 (the "Relevant Period"), Defendants offered and sold unregistered securities, and made materially false and misleading statements and omissions concerning those securities. Through these activities, they raised over $10 million dollars ($10,000,000.00).
Page 1 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
3. Defendants took advantage of their unique relationship and positions of trust with congregants. Defendants asked members of the church and others to transfer assets by representing that their money would be safe and that it would be repaid with interest. Church members did transfer assets as requested, although at least some of the statements by the Defendants were not true. While some funds, including interest, have been repaid, a significant number of investors' requests for repayment have gone unanswered or met with requests that the interest be forgiven or donated to the Living Enrichment Center (LEC).
4. By engaging in the transactions, acts, omissions, practices, and courses of business alleged herein, the defendants violated, and are liable for, the violations of the securities laws and regulations set forth below. Unless enjoined, the state alleges these defendants are likely to commit similar violations in the future.
5. Defendants received over $10 million from congregants and investors, approximately $3 million of which was repaid, and the balance of which has been converted or lost. Many congregants and investors have suffered financially due to the Defendants' conversion and inability to repay the amounts owed.
JURISDICTION AND VENUE
6. This court has jurisdiction over this action pursuant to ORCP 4 and the Oregon Securities Laws at ORS 59.005 et seq. The transactions, acts, omissions, practices and course of business occurred substantially in this county.
PARTIES
Plaintiff
7. Realtor CORY STREISINGER is the Director of the Oregon Department of Consumer and Business Services, and is suing in her official capacity, only, pursuant to ORS 59.255.
Page 2 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
Individual Defendants
8. Defendant Mary Manin Morrissey (Mary Morrissey) was, during Relevant Period, the spiritual leader and minister at LEC. Defendant Edward Morrissey is her husband. Both Morrissey defendants were agents of, and controlled or had significant controlling interest in the following entities, defined below: LEC, LEM, NTBI, and NTBF. With respect to the facts alleged in this Complaint, Mary Morrissey, Edward Morrissey and LEC commingled funds, disregarded entity structures, and worked collectively to further their collective businesses.
9. Defendant Edward R. Morrissey (Edward Morrissey) is an individual, licensed as a CPA until approximately June 30, 1995, who served as a consultant and officer for LEC. During the Relevant Period, he established and was an agent for several for profit and non-profit entities affiliated with LEC including NTBI (defined below). he is married to Mary Morrissey.
Defendant Entities
10. Defendant Living Enrichment Center (LEC) is registered as an Oregon non-profit religious corporation with its principal place of business, including a church and offices, in Beaverton, Oregon. During the Relevant Period, defendant Mary Morrissey was the president and senior minister for LEC. LEC is an affiliate of LEM.
11. Defendant Living Enrichment Ministries (LEM) is registered as an Oregon non-profit religious corporation doing business throughout Oregon. LEC is a shareholder in defendant New Thought Broadcasting, Inc. LEM is an affiliate of LEC; during the Relevant Period, Mary Morrissey and Edward Morrissey exercised significant control over LEM.
12. Defendant New Thought Broadcasting, Inc. (NTBI) is registered as a for profit corporation. During the Relevant Period, Edward Morrissey was, at times, the chairman and chief executive officer of NTBI. During the Relevant Period, Mary Morrissey and Edward Morrissey had and exercised significant control over NTBI.
Page 3 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
13. Defendant New Thought Broadcasting Foundation (NTBF) is registered as an Oregon non-profit religious corporation. NTBF was controlled in part during the Relevant Period by defendant Edward Morrissey.
FACTS
14. During the Relevant Period. Defendants Mary Morrissey and Edward Morrissey operated several entities with a religious or spiritual purpose. The Morrisseys operated LEC as a church in Wilsonville, Oregon, and broadcast church services on television. During the Relevant Period, Edward Morrissey also operated NTBI and NTBF, which were created to broadcast, produce, distribute and market religious based products and services through various mediums including the Internet.
15. During the 1980s, Mary Morrissey started a non-denominational church, which eventually came to be called Living Enrichment Center. By 1991, the Living Enrichment Center had grown to over 2,000 congregants. The Living Enrichment Center was notified in 1992 that its lease would terminate, and Edward Morrissey, Mary Morrissey, and the church board began a search for a new site, to hold services, and to conduct business. Edward Morrissey had consulted for the church since 1990, and agreed to assist in finding a new location and arranging for financing.
16. A site was located and agreed upon in Wilsonville, and an agreement was executed. Financing was obtained through B.J. Ziegler & Co., an organization specializing in the issuance of bonds of non-profit organizations. Funds from this financing effort were used to pay off the purchase agreement and to do some remodeling. Repair, remodel and operational expenses quickly drained the church of any financial reserves.
17. In the early 1990s, Mary Morrissey began soliciting funds, including asking for loans from select congregants in order to meet monthly obligations such as payroll and certain accounts payable. In 1994, the church asked Edward Morrissey to serve as the Vice President of
Page 4 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
Administration and Finance, which he did. He hired Bob Cantrell (Cantrell) to be the Chief Financial Officer. Edward Morrissey and Cantrell developed a plan to develop the local church into a global ministry which would increase contributions and other sources of funds to the church, to increase the reach of its message(s).
18. As part of the plan to grow the ministry, the for-profit organization, Tiger Press (dba Tiger Mountain Press), was established. Mary Morrissey, and at least two investors, contributed capital and other assets to this venture. Edward Morrissey established a relationship with Bantam Publishing which resulted in a publishing agreement between Tiger Mountain Press and Bantam Publishing.
19. Edward Morrissey established Arvus.com in 1999 to provide web-based religious learning. The company was originally formed as a for-profit entity, to carry the religious message. The site would contain broadcasts from various ministers and ministries, and contain web-based training and classes, an allow users to purchase religious products from the various ministries represented. Mary Morrissey and LEC would be among those featured on the website. The plan was initially to be funded with a private loan to Edward Morrissey, but soon he and Bob Cantrell sought legal assistance in drafting a private placement document and putting together a memorandum and other materials for an initial public offering in order to raise more funds. The company name was changed to PersonPlanet Communication, Inc., and eventually, New Thought Broadcasting, Inc. in 2002.
20. Although the offering memorandum was never finalized, Edward Morrissey began selling investments in the program through his own efforts and the efforts of others. These securities offered and sold by Edward Morrissey and others were not registered for sale in Oregon.
21. Edward Morrissey directed the LEC accounting staff to establish an account on the books and records of the church to reflect the increasing fund raising and borrowing he and Mary Morrissey were undertaking in part to fund entities other than LEC. These funds were also
Page 5 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
deposited into the personal accounts of each of the Morrisseys. Moneys were moved between personal accounts, and accounts of the for-profit companies and the church. Accounts were established to reflect funds flowing between LEC and both of the Morrisseys. Brenda Evans was the bookkeeper and controller for LEC. She participated in transactions at issue, and acted at the direction of Edward Morrissey and others.
22. In 2002, in anticipation of another call on the church mortgage, Mary Morrissey and others developed a seven percent (7%) Loan Program that Mary Morrissey and others presented to the congregation. This program purported to offer a 7% guaranteed return to congregants in order to borrow funds and pay down the mortgage on the LEC property. Within a matter of days, Mary Morrissey and others had raised $1.5 million dollars in cash and notes. Upon further legal research, it was discovered that the program violated the securities laws of the state and the program was ended. Nonetheless, checks that had been received were deposited into accounts controlled by Mary Morrissey and Edward Morrissey.
23. As a result of the activities described above, between 1996 and 2004, Mary Morrissey and Edward Morrissey obtained approximately $10.7 million from congregants and personal acquaintances. These funds came from the sale of securities in various programs including but not limited to the private placement offering at PersonPlanet Communications, the 7% Loan Program at the LEC, and as well as notes issues to personal acquaintances and congregants.
24. Bob Cantrell (Cantrell) was at material times the Chief Financial Officer of LEC, and participated and assisted in at least some of the financial solutions, financial solicitations, and transactions made by Mary Morrissey and Edward Morrissey on behalf of LEC.
25. NTBI is an entity substantially owned by Tiger Mountain Press. Mary Morrissey and Edward Morrissey directly or indirectly had majority ownership of NTBI. NTBI's purpose was to offer religious programming and spiritual growth products.
Page 6 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
26. During her sermons, television broadcasts and personal contacts, Mary Morrissey requested that viewers and congregants provide money to LEC to further the ministry. She stated that LEC needed additional funds to continue to broadcast its ministry. Members of the congregation and viewing audiences responded to Mary Morrissey's requests. In 2003, some congregants and viewers sent to the church following some specific requests, and offered to assist by investing in notes or other opportunities with Mary Morrissey, Edward Morrissey, and LEC.
27. Mary Morrissey and Edward Morrissey called and directed that calls be made to, congregants and investors to persuade them to transfer money to LEC and make arrangements for the transfer. Mary Morrissey told investors and congregants that they could help the ministry, and would receive a good return on their money at the same time. Edward Morrissey told congregants and investors that they would receive a specific rate of return - ranging from 3% to 15%, that their money would be safe, and that the return was guaranteed. Pursuant to the notes and offering materials, investors provided money to Mary Morrissey, Edward Morrissey, and LEC for use in the business of LEC and its affiliates respectively. These funds were not segregated from the other operating funds or funds from other sources. The notes were written using template notes, or on other forms prepared by the Morrisseys or LEC. In many cases, the notes could not be repaid as agreed, and were renegotiated, sometimes by forgiving of the interest or principal owned. Many investors received minimal or no payment of interest or principal on the notes.
28. Edward Morrissey presented at least one investor with papers to sign, which he and Mary Morrissey represented were necessary for purposes of making a loan. However, on at least one occasion, among the documents Edward Morrissey and others gave investors was an incomplete private placement memorandum relating to NTBI common stock, a subscription agreement for the purchase of NTBI preferred stock, and papers to facilitate the transfer of funds from investors' accounts to defendants.
Page 7 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
29. On at least one occasion, Edward Morrissey falsely represented that intent and application of the NTBI subscription agreement to be purported loans transaction, and induced the congregant to sign the subscription agreement anyway. He asserted that the agreement described an arrangement that LEC had reached with other congregants on different terms, and that the congregant need not be concerned about the terms, both of which were misrepresentations. Edward Morrissey told investors that their funds were guaranteed by the assets of the church and certain of its affiliates, the life insurance policy held by LEC and Mary Morrissey, and the assets of NTBI.
30. During the Relevant Period, Mary Morrissey met with congregants and encouraged them to make loans or invest with or through LEC. Mary Morrissey represented that funds invested would be used for purposes of paying the obligations and advancing the development of LEC, the ministry, or both. After conferring with Mary Morrissey, congregants and investors trusted Mary Morrissey and signed the papers.
31. During the Relevant Period, Edward Morrissey devised and employed various plans whereby new borrowings would be used to repay previous lenders. At times, Mary Morrissey, on her own or in conjunction with others asked congregants and investors to forgive their debts. Mary asked the LEC Board of Directors to assume the obligations for the outstanding debts.
32. During April and May 2003, Mary Morrissey, in conjunction with the LEC Board of Directors and officers, announced and materially participated in meetings for church congregants to discuss the church's financial situation and ways in which congregants cuold help. Meeting attendees were told the church needed money to keep going and offered an opportunity to loan money to the church in order to help it continue its operations.
33. During the Relevant Period, an investment program called Sharing Our Strength was developed and promoted. This program was promoted by Mary Morrissey and others through LEC and LEM, to congregants and others. The program offered a mechanism by which
Page 8 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
congregants and others would help the church's financial condition. Materials including financial statements were sometimes provided. Those materials made a number of material omissions and misrepresentations, such as the failure to disclose that some of the funds would ultimately be used and spent for purposes other than those directly related to operating expenses of the church. These financial statements also failed to disclose the true financial condition of LEC and its affiliate entities, including but not limited to the fact that neither debt to prior investors nor the mortgage on the Wilsonville property could not be paid from current operational income.
34. Brenda Evans, an employee of LEC, on occasion and at the direction of Edward Morrissey and others, called congregants and investors at home instructing them to make arrangements for the transfer of assets to defendants, often telling them time was of the essence. In response to this assertion and the misrepresentations and omissions set out above, congregants and investors arranged for the transfer of funds through arrangements made by the Defendants.
35. Mary Morrissey, Edward Morrissey, and LEC have failed to provide a full accounting to congregants and investors. Defendants have failed to repay the various loans and investments made by the congregants and investors.
36. NTBI stock certificates were not issued, nor was stock transferred, to all investors.
37. Statements made by Edward Morrissey and Mary Morrissey to congregants, investors and others were materially false and misleading, including but not limited to the following:
-
a. With regard to the individual notes, investors' loans were not guaranteed and secured. Some funds received through notes or note programs were not treated as loans; these funds were at least partially converted for improper purposes including but not limited to payment of personal expenses of Mary Morrissey and Edward Morrissey.
-
b. Funds invested by the congregants and others were not fully secured.
Page 9 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
-
c.. Representations regarding the rates of return that investors could expect to receive were false and misleading because defendants could not generate income sufficient to pay out those returns.
-
d. Representations by the Defendants and others were false and misleading because there were not adequate assets to secure all of the notes and to repay the total amounts due including interest. Such statements led potential investors to believe that the investments were safe.
-
e. At least one investor did not receive convertible, preferred shared of NTBI. Stock certificates were not issued and shares were not held in the names of all the investors.
-
f. Investors' money was not fully used to further legitimate purposes or missions of LEC, LEM, NTBI, or NTBF. Some was converted to the personal use of Mary Morrissey, Edward Morrissey.
-
g. Some investors were not accredited investors under the securities laws, and many were not qualified to purchase any restricted stock, as presented in the subscription agreement.
38. Statements made by Edward Morrissey and Mary Morrissey to congregants, investors, and others contained material omissions including but not limited to the following:
-
a. Defendants failed to disclose that investors' money would not be treated solely as a loan or sock purchase, or that their investments would be used at least in part for the personal expenses and purposes of Mary Morrissey and Edward Morrissey.
-
b. Congregants and investors were not told, nor could they have discovered, that Mary Morrissey, Edward Morrissey, LEC, LEM, NTBI and NTBF were financially unsound and had no means to repay investors.
39. As a result of the misrepresentations and omissions set forth herein, congregants and investors transferred funds to accounts controlled by Mary Morrissey and Edward
Page 10 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
Morrissey. Defendants Mary Morrissey, Edward Morrissey and LEC received over $10 million from congregants and investors, approximately $3 million of which has been repaid, but much of which has been spent, or lost. Many congregants and investors have suffered financially due to the failure of Mary Morrissey and Edward Morrissey to make full repayment.
40. Plaintiff repeats and realleges paragraphs 1 through 39 above.
41. At various times during the Relevant Period, defendant Mary Morrissey and/or Edward Morrissey met with congregants and investors and/or told them about the possibility of making certain investments in promissory notes and other programs offered through LEC. The Morrisseys characterized the investments as "safe" and "guaranteed".
42. At various times during Relevant Period, defendant Mary Morrissey and the Church Board and Officers told potential investors about investment opportunity(ies) in certificates of deposit that would pay returns at rates of 3% to 15% interest.
43. The programs offered through LEC, Edward Morrissey, and Mary Morrissey were securities as defined by the Oregon Securities Laws.
44. As a result of meetings and conversations with Mary Morrissey and Edward Morrissey, and at their urging, congregants and investors contributed or gave funds to Edward Morrissey and Mary Morrissey who explained that the money they were investing would be used for legitimate business purposes of the ministry and would be repaid with interest.
45. All of the investments described above were designed to generate returns and were promoted as generated returns. To the extent returns were generated, they were generated through the efforts and management of persons other than the investors.
46. Edward Morrissey and Mary Morrissey asked investors during the Relevant Period to invest in the various programs offered through LEC and its affiliated entities.
Page 11 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
47. Edward Morrissey, Mary Morrissey, and others arranged for the investments that ultimately were deposited into various accounts, some in the name of Mary Morrissey, Edward Morrissey, or both, LEC, and affiliated entities. Deposits of the investment funds were made to those accounts.
48. None of the defendants were, at any material time, licensed by the State of Oregon to sell securities, nor were they licensed by the State of Oregon as broker-dealers or investment advisors.
49. Mary Morrissey, Edward Morrissey, and others participated and materially aided in the sale of the securities including but not limited to contacting prospective investors, participating in the preparation of the offering memoranda, and working with investors to execute subscription agreements and promissory notes.
50. Edward Morrissey, Mary Morrissey, and others also participated and materially aided in the sale of the securities by virtue of their capacity of control persons.
51. By engaging in the foregoing conduct, the Defendants violated the Oregon Securities Laws, including but not limited to ORS 99.165.
52. Plaintiff is entitled to her reasonable attorney fees pursuant to ORS 59.255(1)
Second Claim For Relief - Sale Of Unregistered Securities
Plaintiff re-alleges Paragraphs 1 through 39, above.
54. Defendants Mary Morrissey, Edward Morrissey, NTBI and LEC were sellers of securities. These defendants and Cantrell and others were also control persons and participated or materially aided in the sales. The securities sold by the defendants were not registered with any regulatory authority.
55. The offering memoranda referred to above and the other vehicles through which investments were made were never registered as securities with the Oregon Department of Consumer and Business Services. Moreover, they were not federal securities for which a fee had been paid to the Director of the Department of Consumer and Business Services.
Page 12 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
56. Defendants are liable under the Oregon Securities Laws.
57. Defendants are jointly and severally liable for the purchase price of the securities, less amounts already repaid, plus interest from the date of purchase.
58. By engaging in teh foregoing conduct, defendants violated the Oregon Securities Laws, including but not limited to ORS 59.055 and 59.115.
59. Plaintiff repeats and realleges paragraphs 1 through 39 above.
60. Defendants Mary Morrissey, Edward Morrissey, NTBI and LEC were sellers of securities and were control persons who participated or materially aided in the unlawful sales. Defendants are liable for the misrepresentations and omissions under the Oregon Securities Laws.
61. Many investors were not knowledgeable or experienced with CD programs or stock ownership and invested based upon the advise, recommendations, and representations of Defendants.
62. During the Relevant Period, the Defendants, in connection with the offer and sale of these investments and the solicitation of others to offer and sell these investments, prepared or provided additional sales materials and correspondence which were materially untrue, in whole or in part, and omitted material facts which were necessary in order to make the statements not misleading, including but not limited to the following:
a. the requirement that these be registered for sale;
b. that there was a guaranteed return with no market risk;
c. that there were insufficient financial resources to pay back all principal invested upon request or when due;
d. the income paid to investors, to the extent such income was paid, was at times received from funds from other investors and not from revenue generated by Defendants;
Page 13 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
e. the actual use of the investors' funds including, but not limited to, that investors' funds would not be fully used for legitimate operations and expenses of LEC.
f. that none of the investment vehicles had been registered, as required by law, with the appropriate state or federal agencies;
g. that none of the persons participating in the sale of the investment vehicles were licensed to sell securities in Oregon;
h. that Edward Morrissey and Mary Morrissey would personally profit fromt eh investments; and
i. that the money invested with the defendants would not be placed in any investment that would allow or provide for full recovery by the investors of the money invested.
63. Investors purchased securities on account of statements made by Edward Morrissey, Mary Morrissey, and others which were untrue in whole or part, including but not limited to the following:
a. That investments in LEC and affiliated companies were safe and guaranteed, and would provide a fixed return;
b. That investment returns would be guaranteed, at rates of 3% to 15% depending on the program;
c. That the principal invested would be returned to investors; and
d. That the investments were secured.
64. As a result of the misrepresentations of material facts alleged above, investors in Oregon and elsewhere were damaged in an amount not yet fully determined, but believed by Plaintiff to be between $5 million and $8 million.
65. A list of the investors to whom the misrepresentations and omissions of material fact were made, the approximate amount of their losses, the approximate date on which they invested their money, and the entity with which they invested their money is on teh attached Exhibit A.
Page 14 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
66. Defendants are jointly and severally liable for the purchase price of the securities, less amounts already repaid, plus interest from the date of investment.
67. By engaging in the foregoing conduct, defendants violated the Oregon Securities Laws, including but ot limited to ORS 59.115 and 59.135.
FOURTH CLAIM FOR RELIEF
Injunction for Violation of Oregon Securities Laws -- ORS 59.255(1)
68. Plaintiff re-alleges each of her Claims for Relief set out above in their entirety.
FIFTH CLAIM FOR RELIEF
Restitution to Victims of Violations of Oregon Securities Laws -- ORS 59.255(2)(a)
69. Plaintiff re-alleges each of her Claims for Relief set out above in their entirety.
Disgorgement of Profits from Violations of Oregon Securities Laws -- ORS 59.255(2)(b)
70. Plaintiff re-alleges each of her Claims for Relief set out above in their entirety.
PRAYER FOR RELIEF
WHEREFORE, plaintiff respectfullyrequests that thsi Court enter a judgment against defendants as follows:
a. Imposing a fine, pursuant to ORS 59.255 for each violation of ORS 59.165 upon Mary Morrissey, Edward Morrissey, NTBI, and LEC; and Mary Morrissey, Edward Morrissey, NTBI, and LEC, jointly and severally, for each effecting or attempting to effect transactions in a security within Oregon by such person, for a total amount against each in n amount to be determined;
b. Imposing a fine, pursuant to ORS 59.255, for each violation of ORS 59.055 upon each of defendants Mary Morrissey, Edward Morrissey, NTBI, and LEC; and Mary Morrissey, Edward Morrissey, NTBI, and LEC, jointly and severally, for each offer to sell or sale of an unregistered security within Oregon in which any of them participated or in which any of them
Page 15 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
provided material aid, for a total amount against each in an unknown amount, but which amount will be established at trial;
c. Imposing a fine, pursuant to ORS 59.255, upon each of defendants Mary Morrissey, Edward Morrissey, NTBI and LEC; and upon Mary Morrissey, Edward Morrissey, NTBI and LEC jointly and severally, for each offer to sell or sale of a security within Oregon in which any of them participated or in which any of them provided material aid that was in violation of ORS 59.153, for a total amount against each in an unknown amount, but which amount will be established at trial;
d. Permanently restraining, enjoining, barring, and prohibiting, pursuant to ORS 59.255, Mary Morrissey, Edward Morrissey, NTBI, and LEC from offering to sell, materially aiding, or participating in the sale or aiding or abetting the sale of any security, whether the security or transaction is exempt from registration requirements under the Oregon Securities Laws, and any other individual or entity through which such defendants might act in the future;
e. Permanently restraining, enjoining, barring, and prohibiting, pursuant to ORS 59.255, Mary Morrissey and Edward Morrissey from acting as an officer of any securities issuer;
f. Permanently restraining, enjoining, barring and prohibiting, pursuant to ORS 59.225 and 59.235 Mary Morrissey and Edward Morrissey from acting as an officer, director, financial manager, or in any financial fiduciary capacity for any charitable or religious non-profit entity;
g. Requiring the repayment of restitition plus interest, pursuant ot ORS 59.255(2)(a) to the persons listed on Exhibit A in the amounts identified there, less any amounts repaid, and to all other persons similarly injured by the acts or practices of any defendant in violation of the securities laws of Oregon as described in this Complaint;
h. Awarding Plaintiff $5,000 for expenses of investigation, pursuant to ORS 59.235;
i. Retaining jurisdiction over this action to implement and carry out the terms of all orders and decrees that may be entered; and
Page 16 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
j. For such other and further relief as to the court seems equitable and just. DATED this 4th day of April, 2005.
HARDY MYERS
Attorney General
Daniel H. Rosenhouse #77327: Trial Attorney
Assistant Attorney General,
Oregon Department of Justice
1515 SW 5th, Suite 410
Portland, Oregon 97201
Telephone (503) 229-5725
Michelle M. Teed, #994389
Special Assistant Attorney General
Oregon Division of Finance and Corporate Securities
350 Winter Street NE, Suite 410
Salem, Oregon 97301
Telephone: (503) 947-7498
Page 17 - Plaintiff's COMPLAINT Oregon v. Morrissey et al.
Department of Justice
1515 SW 5th Ave., Suite 410
Portland, Oregon 97201
503 229-5725
[edit] External links
 |
This work is in the public domain because it is a work of the United States federal government (see 17 U.S.C. 105). |
