PRESS RELEASE
Legal Action Taken Against Christian Freedom Ministries
 
For Immediate Release
Tuesday, February 29, 2000 
 
Contact: Irving L. Faught, Administrator
  Oklahoma Department of Securities
  405-280-7700
 
 
Oklahoma City/////  The Oklahoma Department of Securities today filed a lawsuit in the District Court for Tulsa County against Bruce T. Gilliam, Bruce T. Gilliam doing business as Freedom Association, Freedom Association, Inc., and Christian Freedom Ministries alleging violations of the Oklahoma Securities Act, including the allegation that fraudulent misrepresentations were made in connection with the sale of securities. The Court issued a Temporary Restraining Order prohibiting the defendants from continuing to offer securities, froze the bank accounts of the defendants and appointed a receiver to take control of all assets of the defendants. The Court scheduled a hearing to allow the defendants an opportunity to object to the Order.

Defendants referred to the securities they sold as interests in "bank-secured, high yield trading programs." Potential investors were told that their money would be invested in a bank account and pooled with other investors’ money until sufficient monies were gathered for entry into such trading programs.

The Department alleges that the defendants wrongfully promised that the investment principal would be 100% guaranteed and that investors would receive a return of between 120% and 300% per year. Defendants also required that the purchasers sign contracts swearing they were not government agents and agreeing not to disclose the particulars of the related financial arrangements with government agents. Defendants refused to allow the purchasers to contact the international bankers they were allegedly dealing with or the international institutions with which they worked.

Irving Faught, Administrator of the Department of Securities, warned potential securities investors to be wary of sales pitches involving complicated and confusing contracts that do not fully disclose the details of an investment. "Investors should be particularly concerned about promises of enormous returns based on a complex story of high stakes world finance in international banking circles. Securities regulators are concerned about so called "prime bank programs" that use notes, guarantees, letters of credit or debentures and involve unspecified international financial institutions," Faught said. Promoters of such programs often use vague references to official international groups such as the International Monetary Fund, the Bretton Woods Convention, the International Chamber of Commerce, and the World Bank, along with impressive sounding terms such as hypothecating debt instruments, facilitators and off-shore banks accounts to give their programs undeserved credibility.
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This press release, and related information, is available on the Securities Commission's web site at securities.ok.gov, by phone at (405) 280-7700, or in writing at:  Oklahoma Securities Commission, 204 North Robinson, Suite 400, Oklahoma City, OK 73102.