A lawsuit seeking $19.86 million in actual and punitive damages from
the Oklahoma Department of Securities, for alleged slander and
alleged willful misuse of its power to administer state securities
laws, has been filed by two Oklahoma broker-dealers, John C. Roberts
and James Frank Lillard, and Intershares, a Delaware corporation.
Also named as defendants in the lawsuit were: Susan Bryant,
administrator of the securities department; Chris Condren, general
counsel for securities department, and Scott Wallace, an individual.
Bryant and Condren also were named individually as defendants,
according to the lawsuit, which was filed late Friday in U.S.
District Court in Oklahoma City.
In their federal lawsuit, the plaintiffs alleged that Bryant and
Condren had engaged in certain individual acts, which "were
purposely committed in a conspiracy to harm the plaintiffs with a
willful, wanton and malicious intent to put plaintiffs out of
Condren declined comment Wednesday. He referred all questions
to Assistant Attorney General David Lee, who is representing him in
The plaintiffs' federal lawsuit was filed as an answer to the
allegations of securities fraud, which the state securities
department made against them on April 8, in a lawsuit filed in
Oklahoma County District Court.
Those allegations were concerned with transactions involved in
the sale of unregistered shares of stock in Money Plus Inc., an
On April 8, Oklahoma County District Judge Richard W. Freeman
issued a temporary restraining order against Roberts, Lillard and
Intershares, at the request of the state securities department.
Gary Richardson, a Tulsa attorney representing the plaintiffs,
acknowledged that filing a federal slander lawsuit against a state
agency was "pretty unusual," in response to a question.
"It's pretty unusual," he said, "because it's highly unusual for
a state agency to conduct itself in the way that Chris Condren has.
Most of the complaint addresses his (Condren's) conduct.
"A state agency that has the power the securities department
has," he said, "can just destroy someone, if they get reckless."
About a year ago, Richardson said he filed another lawsuit
against the Oklahoma Department of Securities on behalf of another
plaintiff, Financial Investment Network, based in Edmond.
"The securities department," he said, "in that case, made some
pretty reckless and outlandish statements, and ended up having to
dismiss the petition. But that was after they had really damaged
In their federal lawsuit, Roberts, Lillard and Intershares
- Condren, in the scope of his state duties, conspired with
Bryant to begin a campaign to violate plaintiffs' constitutional
rights by telephoning persons interested in meeting with plaintiffs'
officers to misrepresent that they were under investigation for
fraud, forgery and illegal business practices. …