Hey Rick, here's some recent MOLOVINSKY info...as shown in the SEC News digest ISSUE 99-235, published 12-8-99, it indicates the following was to occur at the Dec. 15th, 1999 meeting:
CIVIL INJUNCTION AND OFFICER AND DIRECTOR BAR ISSUED ACTION AGAINST BRENT
MOLOVINSKY
The Commission announced that on December 2 the United States
District Court for the District of Maryland entered a Final Judgment
and Order against Brent Molovinsky (Molovinsky), the former
president and chairman of the board of TVI Corporation (TVI), a
publicly held military defense contractor headquartered in
Beltsville, Maryland. Entry of the judgment serves to settle the
Commission's case against Molovinsky.
Without admitting or denying the Commission's allegations,
Molovinsky consented to the entry of the judgment which permanently
enjoins him from violating Sections 5(a), 5(c) and 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 judgment also requires
Molovinsky to pay disgorgement and prejudgment interest, but waives
payment of these amounts and does not impose a civil penalty based
on his demonstrated inability to pay. In addition, the judgment
bars Molovinsky from acting as an officer or director of any public
company.
The Commission alleged that, between October 1992 and April 1995,
Molovinsky, who had exclusive control over TVI's day-to-day
operations and finances, engaged in a scheme in which he
misappropriated more than $1 million of investor proceeds raised
from the sale of over $2.9 million of TVI stock to at least 699
investors. The stock was to be offered and sold to existing TVI
investors and creditors pursuant to a court-approved plan of
reorganization, and was to be subject to a provision in the United
States Bankruptcy Code exempting such sales from registration.
In its complaint, the Commission charged that Molovinsky
fraudulently stimulated demand for TVI stock by making materially
false and misleading statements concerning the company's revenues,
earnings and assets. Molovinsky disseminated the misleading
information through investor correspondence and a series of TVI
press releases which he prepared and issued. Among other things, he
overstated TVI's revenues and income during 1992 and 1993, falsely
represented that TVI had contracts to build tank gunnery ranges that
would generate revenues exceeding $2.5 million, and falsely stated
that TVI held patents for low-cost stealth material and thermal
targets used in military applications.
According to the complaint, Molovinsky took advantage of the
increased demand generated by his false and misleading statements by
selling almost all of the 14 million shares of TVI stock issued in
the offering without regard to restrictions imposed by the
reorganization plan. Among other things, he sold more shares than
permitted, and sold shares outside the prescribed 60 day sales
period. In addition, at least 8.7 million of the shares were
neither registered with the Commission nor subject to the exemption
from registration provided by the Bankruptcy Code because they were
sold to persons who were neither existing creditors nor shareholders
of TVI. The Commission also alleged that Molovinsky misappropriated
over $1 million of the proceeds by withdrawing funds from TVI
corporate bank accounts and diverting investor checks to bank
accounts he controlled. [SEC v. Brent Molovinsky, USDC, D.MD, Civil
Action No. PJM-963046] (LR-16380) |
