Here's the SEC summary rom the SEC Digest:
COMMISSION SEEKS EMERGENCY RELIEF IN CONNECTION WITH "PUMP AND DUMP" SCHEME OVER THE INTERNET
The Commission announced that on February 16 in the United States District Court for the Southern District of New York, it sought a temporary restraining order against Wellness Universe Corporation (Wellness), Synpan Corporation (Synpan) and, their Chief Executive Officer, George Charles Pappas (George Pappas) (collectively, Defendants). The complaint also names Paul George Pappas, Karyn L. Pappas, Kyriak W. Pappas, Makypa, Brooks Williams, Tobias Weissman, Iris B. Coleman, Joann Cingari, and Louise Fiorenza as Relief Defendants. The complaint seeks to freeze Defendants' and Relief Defendants' assets and temporarily restrain Defendants from violating the antifraud provisions of the securities laws.
The complaint alleges that, since December 1999, George Pappas caused Wellness and Synpan to issue false and misleading press releases, largely over the internet, which boosted the price of Wellness stock from approximately $.10 per share in December 1999 to over $1.00 per share in early February 2000. The complaint also alleges that, during this time, George Pappas, through Relief Defendants -- members of George Pappas' family and other nominees -- sold 3.7 million shares of Wellness stock to the public for an aggregate of approximately $2.5 million.
The Commission seeks permanently to enjoin Defendants from further violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission also seeks disgorgement from Defendants and Relief Defendants of all ill-gotten gains obtained as a result of Defendants' scheme, and prejudgment interest thereon, and civil penalties against Defendants. The litigation is pending. [SEC v. Wellness Universe Corporation, Synpan Corporation, George Charles Pappas, Defendants, Paul George Pappas, Kyriak W. Pappas, Makypa, Brooks Williams, Tobias Weissman, Iris B. Coleman, Joann Cingari, and Louise Fiorenza, Relief Defendants, 00 Civ. 1147, RMB, SDNY] (LR-16439)
sec.gov
|
