The commission filed this injunctive action on the basis of allegations that more than 14, 500 individuals were induced to transfer at least $270 million of their retirement savings to Qualified Pensions, Inc. ("QPI"). the complaint alleged that QPI permitted investors to purchase illiquid, unregistered securities that generally could not be purchased in IRA accounts at banks or broker-dealers and that QPI misappropriated at least $4.5 million in retirement savings that were entrusted to QPI by its clients to be maintained in IRAs and other retirement savings plans.

The commission sought and obtained a TRO and an asset freeze. On October 2, 1995, the court entered a preliminary injunction and continued the freeze of the defendants' assets. Subsequently, the court appointed a receiver and the receiver reported to the court that QPI's principal had misappropriated more than $10 million.