COMPLAINT FILED AGAINST STEVEN SAMBLIS AND NEW STOCK, INC.
The Commission announced that on January 5 it filed a complaint in
U.S. District Court for the Middle District of Florida in Orlando
against Steven Samblis and his corporation New Stock, Inc. (NSI).
According to the SEC's complaint, Defendant Samblis is a resident of
the Orlando, Florida area and self-professed stock picker. The SEC
alleges that Samblis, together with co-defendant NSI, is passing
himself off as an independent and impartial stock picker when, in
fact, he is nothing more than a paid pitch man for the companies he
hypes. In its complaint, the SEC alleges that in October 1997
Samblis published a magazine, New Stock, in which he
enthusiastically recommended the securities of certain publicly-
traded companies without disclosing that he had been paid at least
$20,000 to make these recommendations. The SEC also alleges that
Samblis was paid to issue thousands of E-mails over the Internet
regarding these same securities. The SEC learned of Samblis'
activities when detected by the Enforcement Division's Internet
Surveillance program.
The SEC is seeking an expedited hearing and preliminary injunction
because it appears that Samblis is about to violate the securities
laws again in connection with the forthcoming January 1998 issue of
New Stock.
The complaint charges Samblis and NSI with violating Section 17(b)
of the Securities Act of 1933. Section 17(b) makes it illegal for
any person to distribute any publication recommending a security
while being paid to do so without fully disclosing that he has been
or will be paid for recommending the stock and the amount he has
been or will be paid. In addition to a preliminary injunction, the
SEC seeks a permanent injunction against Samblis and NSI,
disgorgement of ill-gotten profits, and civil money penalties. [SEC
v. Steven Samblis and New Stock, Inc., Case No. 98-001-CIV-ORL-22-
C.] (LR-15609) |
