macaw Just to the stralght

Sat. Jul 22' 2017 31124 PM

  

To Jackgrauer@gmall corn

ls a letter I sentto the SEC last year. Needless to say' there has been no response

The last cllenl acoutred the Collateraltzed Investment Agreement 20 years ago next month At that ttrne all bonds sold by
all customers have been pald off. the government cannot declare them taxable The last threat agatnst rne have
been removed.

Here ts the letter.

JOHN G. BLACK
1446 Centre Line Road
Warriors Mark, Pa 16877

August 1, 2016

Kenneth Hall

ChlefCounsel

of Enforcement

Secuntles Exchange 
100 Street NE

20549

Dear Mr Hall

My request that the vuthdravt September 25, 1997 eornplamt agamst me and my cornpames
vtas made In May of 20] 5 Your letter a year later ls not responsrve to my request because I never settled or
that vtolated Seetton 17(a) ofthe Secunttes sectton Exchange Act and
Rule tons Also. rtnanetal Management Sclences the Issuer ofthe only secunty ovlned by the
eltents, the Collateraltzed Investment Agreement never settled the The
recogmzed that vtas never found gurlty or settled those charges when lt remstated me under
the Securltles and Exchange Acts 2010 and stated that the rndustry bar rmposed by the vtas
deemed a collateral bar

The ofthe Seeurrtres and Exchange rs to protect mvestors to be the
mvestor's advocate The rs for enforcmg the secunttes lavts ofthe Umted States
The fallure of the to enforce those lavts and the ovm regulattons rs and
The must enforce those lavts even agamst ttselt'

-- 

 ruinii Jusl in sci the record stingm
The Commission conducted an audit of my companies in August of 1997 The results oflhal audit were
never divulged to me or in coun l-lowever,those results must correspond With the tax returns filed by lhe
trustee and previously submitted to the Commission Those retums showed (1) that the lair value ofthe
assets owned by FMS were approXimately $64 million less than the fair value oflhe CIA owned by the
clients (2) the CIA outstanding on December 31, 1994, before the Commission alleged any infraclion ofthe
securities laws, was $240 million, (3) over $51 million in earnings and capital gains were received between
January 1995 and July 1997_ and, (4) $49 9 million was distributed to the owners oflhe CIA,
$8 million more lhan required by the terms oflhe investment

The Commission complained that FMS agrees to secure or co11atera1ize each LGU's [client's] principal by
securities having a lair market value equai to 100% oflhe investment in accordance with law"
[Complaint 91 22] Because the value ofthe assets was less than the fair value ot'the CIA, the Commission
complained there was a breach of contract which occurred seven months afier the CIA was purchased by my
clienls

However, on May 9, 2001 the district coun held lhal the CIA was a security, an investment contract as
defined in SEC i- Hmvey, 328 us 293 (1946) That opinion also mirrors the requiremenls contained in the
Inlemal Revenue Services' Arbitrage Regulations which takes precedence over law for the
investment oflax exempl bond proceeds Such investmenls must be valued on a discounted cash flow,
presenl value basis The CIA was a security With a fair value greater lhan the amounl invested The clienls
were not "under collalerallzed" as the Commission complained Based upon the reasonably expected profits
to be earned, the fair value oflhe CIA outstanding on Seplember 26, 1997 was in excess of $250 million
versus a cost ot'$233 million The value was determined afier lhe paymenl ofwhat the Commission called
"mlsapproprmlion ofclient funds" but were noirnal business expenses

Dr William Miller, former Superintendent of the Tyrone Area School published The Politicx of
Sunbury Press, Mechanicsburg, Pa September, 2015 It is clear from that book that some or all
clienls did not receive the fair value oflhe security they owned, the CIA Inslead, the Commission, the
Investor's Advocate, allowed the assets ofthe enlerprise to be dislrihuled as full compensalion for CIA The
Commission knew or should have known from its audit that lhe value ofthe CIA exceeded the value ofthe
corporate assets because ofthe excess returns paid to the clients "from the efforts ofothers

The Commission has a responsibility to prolect investors to insure the investors are compensated for lhe fair
value ofthe securities they own in connection with any purchase or sale Forced redemption ofthe CIA by
the truslee is treated as a sale under lhe IRS Tax Code Yet the Commission allowed the CIA to be sold to the
trustee for less than lair value There was security fraud in connection with the purchase or sale ofa security
but it was not commitled by me or my companies It is the responsibility ofthe Commission to enforce the
securities laws of lhe Untied Slales

Now, in addition to my requesl that the Commission withdraw its complaint, 1 am also petitioning lhe
Commission lo enforce its own regulalions and lhe laws oflhe United States by paying lo my clienls lhe
value ofthe C1A on September 26, 1997 1 look forward to your prompt reply

Sincereiy,

7m/2ol7 mm In 5m \hc mam svalghl

John 0 Black

YES. Thanks lo! to me.

I read some more recent Lexis case summanes and saw lhalyou'd been appealing wilh the SEC circa 2012\sh. I was
always cunous aboul happened wulh lhal.

Wnling an addendum on the posllhal menucns you now,

Just mu a requesuor The afPIeval/Ing now Can'lwamo read .1.
{Oumed lexl madam]

Imps guaglc en 1" 1/3