A Northern Virginia loan company, accused of selling unregistered securities and defrauding investors, has repaid all Virginians who invested $35,000 in the firm, according to the Virginia State Corporation Commission.
The SCC this month issued an order stating that the Vienna Finance Co., 308 Maple Ave. W, has complied with an injuction issued last year, by repaying the seven Virginia investors.
Last week the Securities and Exchange Commission filed suit seeking an injunction against the firm and its president, Norman C. Tillette, claiming they had defrauded 57 investors around the country, sold $860,000 in unregistered securities and that Tillette used company funds for his own use.
The SCC said complaints it received against the company were similar to those alleged by the SEC. The SEC claimed in its suit filed last week in U.S. District Court in Alexandria that the firm defrauded 43 investors of $643,000 in debentures and 18 investors of $217,000 worth of preferred stock by saying the company was sound when it was continuously losing money. The also said Vienna Finance kept inaccurate records and failed to disclose alleged financial finagling by its president.
The SCC also charged that at least $15,000 of the company's funds were used by Tillette for his personal use, "including but not limited to clothes, jewelry, television sets and charges incurred at restaurants for nonbusiness purposes."
The SEC also alleged that from 1976 until last September, Tillette forced the company to provide and maintain for his and his wife's use at least two and as many as three automobiles.
The SCC last May entered a temporary injunction against Tillette and the company. The SCC, which regulates utilities, banking and securities, is also a court of record and its decisions may be appealed directly to the Virginia Supreme Court.
Last August, the commission and Vienna Finance signed a consent order, an SCC spokesman said, in which the company agreed to make a full disclosure of its financial condition to investors or make full restitution. The company decided to make full restitution, the SCC spokesman said.