<---- click on picture for large scan

Capital Growth Company S.A.,
Certificates (ca. 20 x 30 cm) of preferred shares with a 3 by 6 cm Vignette in gold relief print of a 3-master sail ship. The company was incorporated by Hernan Corero Zuniga as Notary Public on May 5th 1971 and recorded under entry 208, page 326, volume 96 of the Mercantile section of the Public Registry of Costa Rica. Clovis Mc. Alpin, signed as president.

A Dutch Saying: "Het is niet alles goud dat er blinkt" (not everything that shines is gold).

In 1974, the SEC (Securities and Exchange Commission) has filed a complaint against Capital Growth Company S.A. (Costa Rica), its president Mc. Alpin and against related persons and companies for a series of self-dealing transactions, resulting in depletion of the company assets (see SEC News Digest, Sept. 4, 1974). The related persons and companies in this complaint were: Capital Growth Company S.A. (Panama); New Providence Securities Ltd., S.A.; Sheffield Advisory Company; Sheffield Advisory Company, S.A.; EHG Enterprises, Inc.; Clovis W. Mc Alpin; Sanford C. Shultes; Ariel E. Gutierrez and Enrique H. Gutierrez, charging them with violations and aiding and abeting violations of the antifraud provisions of the securities laws. "The complaint alleges that Mc. Alpin and the other defendants have engaged and are engaging in a scheme to defraud the shareholders of Capital Growth Company, an offshore mutual fund, through a series of self-dealing transactions involving extensive utilization of the jurisdictional means resulting in the depletion of the assets of Capital Growth Company".

In 1977, a US district judge enteres a final judgement in the case of the SEC versus Captial Growth Company et al.:
"The New York Regional Office announced that on April 15 the Honorable Charles E. Stewart Jr., U.S. District Judge for the Southern District of New York, entered a final judgement of permanent injunction enjoining EHG Enterprises, Inc., Ariel E. Gutierrez and Enrique H. Gutierrez from violating the antifraud provisions of the securities laws. The defendents were further enjoined from disposing of or exercising any control over the assets of Captal Growth Company S.A. (Costa Rica) and Capital Growth Company S.A (Panama). The defendants consented to the entry of the permanent injunction without admitting or denying the allegations in yhe commission's complaint (SEC v. Capital Growth Company, S.A. (Costa Rica), et al., U.S.D.C. S.D.N.Y., 74 Civ.3779 (CES). (LR-7883)"

Many more details on the persons and companies involved in this scam (and how they were related) can be found in a 1974 legal document. Given time, we shal dwell upon these issues here as well

I sometimes receive questions of persons who inherited or bought shares in this company and want to know if they still have any economic value. I don't think they have and from the above it becomes quite clear that mr. Mc. Alpin, who signed the certificates as president, has deceived his investors, together with others named above. Anyone who knows more about this company is requested to inform me, in order that that I can answer those who wrote to me. I take it that these certificates are now just collector's items, especially because of their beautiful sailship, printed in gold relief.

The following certificates of Capital Growth Company (Costa Rica) are for sale here,
all in unfolded and perfect condition. They all have the golden vignette; only the border colour and number of shares differ. Price differences reflect availability.
------- 1 share, green, July 19th1971, price 20 Euro
------- 5 shares, ocre, July 19th 1971. price 25 Euro
------- 10 shares, brown, July 19th 1971, price 25 Euro
-------  25 shares, blue, July  19th 1971, price 25 Euro
----- 100 shares, purple, July 19th 1971, sold out, no longer available for sale.

Many people wrote to me about their holdings in Capital Growth Company:

1) Mr. Dr. Heinz Hausser bought the shares in 1968 through a Swiss bureau: New providence Securities, Ltd, International sales Office in Zuerich (Switserland). This is strange as the company was established only in 1971, as far as I can see from my pieces. Perhaps he owns certificates of teh Capital Growth Fund (see below).
2) Livio and Mario Montagnana's (Italy) father has 11 certificates
3,4) I received further requests for information from South Africa and from The Netherlands.
5) by june 2006 I have quite a pile of letters from decepted investors or their heirs.

Capital Growth Company may be the successor of Capital Growth Fund, registered  in the Bahamas under New providence Securities Ltd. See further below.

Capital Growth Fund,
registred in the Bahama's under New Providence Securities Ltd.
These certificates also have the vignette in gold relief, of 3-master sail ship, 3 by 6 cm
The fact that the vignette is similar to that of the Capital Growth Company, Costa Rica, as well as the fact that the first 2 words of the companies are similar, seems to indicate that the "Company" was related to the "Fund", possibly it's successor.

Share holders of this company also have approached me for further information:
1) Louis Atwell's grandfather invested 12.000$ in 1964, never to see the money again. The last name of the company's representative was Alphi.
2) Claudia Bianchi (Italy) has certificates from 1968
3) Diane Van Bockstal (Belgium) has a share from 1970

I would like to add one of these items to my collections: please mail me your offer.

Web www.hugovandermolen.nl