From today's SEC Digest:
RAY FERNANDEZ, FORMER CHAIRMAN AND CEO OF MADERA INTERNATIONAL, INC., ENJOINED AND BARRED FROM SERVING AS AN OFFICER OR DIRECTOR OF A PUBLIC COMPANY
On May 8, 2003, the U.S. District Court for the District of Columbia entered a judgment of permanent injunction against Ramiro Rafael (Ray) Fernandez. The judgment enjoins Fernandez from violating the antifraud provisions and from aiding and abetting violations of the reporting provisions of the federal securities laws. The judgment also permanently prohibits Fernandez from acting as an officer or director of any publicly-held company
The judgment further provides that the amount of any disgorgement or civil penalty to be paid by Fernandez shall be determined by the Court following a hearing. At that hearing, the issues will be limited to determining the appropriateness and amount of any such disgorgement and civil penalty, Fernandez will be precluded from arguing that he did not violate the federal securities laws as alleged in the Commission's amended complaint, and the allegations of the complaint will be accepted as true by the Court.
Fernandez consented to the entry of the judgment without admitting or denying the allegations of the Commission's amended complaint.
Ray Fernandez was Madera's Executive Vice President in charge of sales and marketing and Chief Executive Officer of Madera International Environmental, Inc., a wholly-owned subsidiary of Madera. In December 1998, he was additionally elected Chairman of the Board of Directors of Madera, and later, in November 2000, also became its Chief Executive Officer, replacing his father, Ramiro M. Fernandez-Moris. The amended complaint alleges:
* Fernandez signed, in his capacities as Director and Chairman of the Board, Madera's fiscal year 1999 annual report on Form 10-K that was filed with the SEC on March 8, 2000 and that contained numerous false statements.
* Fernandez posted numerous false statements concerning Madera on an Internet message board during the period April through September 19, 2001.
* At the same time he inflated the share price of Madera through these fraudulent public disclosures about Madera's assets, operations, and revenues, Fernandez sold personal holdings of Madera common stock. Specifically, from May 2000 through July 2001, Fernandez sold at least 7,939,200 shares of Madera common stock and obtained proceeds of at least $68,791.65. [SEC v. Ramiro M. Fernandez-Moris, Daniel S. Lezak, and Ramiro Rafael (Ray) Fernandez,01 Civ. 1985 (JR) D.D.C.] (LR-18171; AAE Rel. 1793)
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