(Bloomberg) ? Saudi financier Adnan Khashoggi said he didn?t help inflate GenesisIntermedia Inc.?s share price as part of a $130 million securities fraud scheme US regulators accuse him and others of orchestrating.

Khashoggi, 70, said he acquired Ultimate Holdings Ltd., a Bermuda company that the US Securities and Exchange Commission alleges improperly loaned 15 million GenesisIntermedia shares to broker-dealers, in November 2000, after the stock-loan scheme was put in place.

?I was going to be an investor and help raise capital for GenesisIntermedia in the Middle East,? Khashoggi said in a telephone interview from Riyadh. ?In the end we couldn?t do that and we didn?t make one penny.?

The SEC, in a lawsuit yesterday in federal court in Los Angeles, accuses Khashoggi and Ramy el-Batrawi, GenesisIntermedia?s former chief executive officer, of improperly profiting through a scheme in which they loaned out the company?s stock at market value while artificially inflating the stock price. They failed to repay the intermediary brokers when the scheme collapsed, the SEC said.

By lending the shares to dealer-brokers rather than selling them, El-Batrawi and Khashoggi benefited by keeping control of the stock and avoiding a drop in the share price that may have resulted if they sold on the open market, the SEC said. Under the loan arrangements, when the price of GenesisIntermedia shares went up, El-Batrawi and Khashoggi would receive more money for the shares they had loaned out. ?This all happened in America, we were not involved,? Khashoggi said. ?This will be proven in court.?

GenesisIntermedia is a defunct Van Nuys, California-based telemarketing company. Trading in GenesisIntermedia was halted in September 2001 after the shares plunged 65 percent. The wreckage caused the failure of some of the intermediary brokers that had handled the loans and saddled the Securities Investor Protection Corp. with a $42 million payout.

The company sold the ?Ab-Twister? exercise device and ?Men Are From Mars, Women Are From Venus? relationship products through infomercials. The company was also attempting to place Internet kiosks in shopping malls.