NAVIGATORS INTERNATIONAL AND FORMER PRESIDENT LIABLE FOR $70,000 IN FRAUDULENT BOND FUNDING SCHEME
The SEC announced that U.S. District Court Judge Nancy F. Atlas entered two final judgments in a civil action involving Navigators International Management Co., Ltd., a Bahamian corporation. Navigators, without admitting or denying the Commission’s allegations, consented to entry of a Final Judgment that finds the corporation liable for payment of $45,000 under Securities Act Section 20(d) and Exchange Act Section 21(d)(3).
James R. Spurger, the company’s former president, without admitting or denying the Commission’s allegations, consented to entry 
of a Final Judgment that finds him liable for payment of $25,000 under Securities Act Section 20(d) and Exchange Act Section 21(d)(3).
According to the Commission’s complaint, Navigators, its officers, and persons acting on their behalf, solicited investors to participate in an unregistered and fraudulent bond funding program. Investors were promised returns of 67% or more and were assured that their principal was safe and collateralized. The complaint alleged that investors’ funds were not safe and collateralized and that none of the investors received a return of principal or payment of the promised profits.
Litigation against Benjamin R. Young, the remaining defendant named in the complaint, is continuing.
