1998 Securities and Exchange Commission v. Stewart, et al., Civil Action No. The Securities and Exchange Commission announced that the Honorable Loretta A. Preska of the United States District Court of the Southern District of New York has entered a final judgment against George Wallace Stewart in SEC v. Stewart, et al., Civil Action No. The investment programs were scams, the instruments themselves bogus. Instead of using the money as promised, Stewart and the other defendants misappropriated the investors funds for their own benefit, transferring portions of the money to at least one individual and three entities, who were named as relief defendants. By participating in this fraudulent investment scheme, Stewart and the other defendants violated the antifraud provisions of the federal securities laws.
Litigation continues as to the remaining nine defendants and four relief defendants.