Litigation Releases (James R. Harrold; Franklin Management and Consulting, LLC; Accipter, LLC; Franklin Asset Management and Consulting, LLC; Franklin Management and[...]

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26409 / September 23, 2025

Securities and Exchange Commission v. James R. Harrold et al., 1:01-cv-01318 (S.D. Ind. filed Sept. 7, 2001)

SEC obtains Final Judgment and concludes litigation against James Harrold and several entities Harrold controlled

On September 11, 2025, the U.S. District Court for the Southern District of Indiana entered a final judgment against defendants James R. Harrold; Franklin Management and Consulting, LLC; Accipter, LLC; Franklin Asset Management and Consulting, LLC; Franklin Management and Consulting, Inc.; and Concord Development Group, LLC and ordered the defendants to pay $3,780,392.60.

The SEC's complaint was filed on an emergency basis in September 2001 alleging that Harrold and the entity defendants he owned and controlled raised at least $2 million from investors nationwide in connection with a prime bank scheme. On September 14, 2001, the Court entered a bifurcated judgment permanently enjoining Harrold and the entity Defendants from further violating Sections 5 and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and ordered the appointment of a Receiver, among other remedies, but left the determination of the appropriate amounts of disgorgement, prejudgment interest, and civil penalties for a later date.

The final judgment orders the Defendants to pay, on a joint-and-several basis, disgorgement of $3,635,126.52 plus prejudgment interest of $145,266.08, offset by the $3,534,749.44 cumulatively collected by the Receiver in this action and the Department of Justice in a parallel criminal proceeding.

The SEC's investigation and litigation was conducted by Timothy Leiman and Richard Stoltz of the Chicago Regional Office and supervised by Anne McKinley of the Chicago Regional Office.