ARIZ. INDICTS EXECUTIVES OF SUE ELLEN

DALLAS — The founders of Sue Ellen Inc., a fashion jewelry company that shut down last year, have been indicted for fraud, theft and unregistered securities by an Arizona state grand jury.
The indictments against William David Grammer and Sue Ellen Allen followed a 20-month investigation of the married couple that began shortly before the company filed Chapter 7 bankruptcy in June, 1993. Founded in 1988, Sue Ellen sold British-made goldplated and crystal jewelry that mimicked fine jewelry. The privately held company was based in Tempe, Ariz.
Grammer, who was chairman, was indicted on 30 counts of fraudulent schemes and artifices, two counts of attempted fraudulent schemes and artifices, three counts of theft and 21 counts of unregistered securities.
Allen, president and designer, was indicted on 13 counts of fraudulent schemes and artifices, two counts of attempted fraud and 21 counts of unregistered securities.
“Grammer and Allen are accused of inducing victims to invest in their jewelry business using false financial information,” said Arizona State Attorney General Grant Woods. “We allege investors in the company were led to believe Sue Ellen Inc. was making a lot more money than it actually was.”
Grammer and Allen could not be reached for comment.
The state charges that Grammer defrauded 29 victims out of more than $1.3 million, and that Allen was involved in defrauding 11 of those investors out of more than $860,000.
Grammer and Allen will be arraigned Thursday in Maricopa County Superior Court. They could face up to 14 years imprisonment on each fraud charge, and up to five years imprisonment on each securities charge.

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