ALABAMA SECURITIES COMMISSION

770 WASHINGTON AVE, SUITE 570

MONTGOMERY, ALABAMA 36130-4700

 

Telephone: (334) 242-2984 or 1-800-222-1253. Fax: (334) 242-0240

Email:  asc@asc.alabama.gov   Website:  www.asc.state.al.us

 

For Immediate Release

 

            MOBILE, ALABAMA, (July 28, 2004) Joseph P. Borg, Director Alabama Securities Commission, and John Tyson, District Attorney, 13th Judicial Circuit in Alabama announced today the arrest and revocation of the bonds of Thomas E. McCray and Inez S. McCray of Mobile, Alabama.  Thomas and Inez McCray were initially arrested by Agents of the Alabama Securities Commission on May 7, 2004 and were charged with one count each of selling unregistered securities and selling securities while not registered as a securities agent in the state of Alabama. The charges were brought as a result of a joint investigation conducted by the Mobile County District Attorney's office and the Alabama Securities Commission. The McCrays were released from custody on the same day of the arrest after each posted a $200,000.00 bond.

 

On July 27, 2004, Thomas and Inez McCray appeared in Mobile District Court for a preliminary hearing on the charges.  After hearing arguments, District Court Judge Charles McKnight found that probable cause existed to refer the charges to the Mobile County Grand Jury.  During the hearing Judge McKnight also heard testimony and arguments on District Attorney Tyson's motion to revoke the bonds of Thomas and Inez McCray.  Assistant District Attorney Martha Tierney presented evidence showing that Thomas and Inez McCray continued to commit felony securities violations while free on bond.  Judge McKnight revoked the bonds of Thomas and Inez McCray and remanded the Defendants to the custody of the Mobile County Sheriff.

 

The McCrays are charged with selling unregistered securities in the form of

certificates of ownership in an entity known as Health & Wealth Coop in Sharpsburg, Kentucky. On May 6, 2004, District Attorney Tyson's office began receiving complaints alleging that Thomas and Inez McCray were offering and selling investments issued by Health & Wealth Co-op in Mobile County, Alabama. The Complainants alleged that the McCrays held meetings at their home in Mobile, Alabama, promoting Health & Wealth Coop.  During these meetings the McCrays represented that a deposit or investment, with Health & Wealth Coop would pay investors monthly interest ranging from 6.25% to 12.5%.

 

It is also alleged that Thomas and Inez McCray told potential investors that Health & Wealth used investor money to trade international currency.  Profits from the international currency trading were the source of the represented monthly interest payments.  During the hearing District Attorney Tyson's office argued that to date, no evidence has been found of the trading of international currency by Health & Wealth Coop.

 

The joint investigation into the activities of Health & Wealth Coop continues.  Director Borg and District Attorney Tyson urged anyone who has invested or made deposits with Health & Wealth Coop to contact either the Mobile County District Attorney's office or the Alabama Securities Commission.

 

FOR ADDITIONAL INFORMATION CONTACT:

 

John M. Tyson, District Attorney, Mobile County (251) 574-8400

 

Martha Tierney, Assistant District Attorney, Mobile County (251) 574-3307

 

Dan Lord, Education and Public Affairs, Alabama Securities Commission (334) 353-4858

 

 

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ALABAMA SECURITIES COMMISSION

770 WASHINGTON AVE, SUITE 570

MONTGOMERY, ALABAMA 36130-4700

 

Telephone: (334) 242-2984 or 1-800-222-1253. Fax: (334) 242-0240

Email:  asc@asc.alabama.gov   Website:  www.asc.state.al.us