SEC SUES STOCK PROMOTER AND TWO FORMER OFFICERS OF VIP GLOBAL CAPITAL, INC.
FOR SECURITIES FRAUD
The Commission announced that it filed a civil injunctive action
alleging that Timothy S. Vasko, the former chairman and CEO of VIP
Global Capital, Inc., made materially misleading disclosure in VIP's
filings with the Commission, particularly with respect to VIP's credit
arrangement with its major source of financing; that Vasko and Edward B.
Williamson, a stock promoter who published an investment newsletter,
engaged in a scheme to tout VIP and manipulate the market for VIP's
securities; and that Michael J. Schuchard, a former senior vice
president and member of VIP's board who also worked as a registered
representative of a broker-dealer, fraudulently sold securities of VIP
to his brokerage customers. VIP, a now defunct holding company based in
Denver, Colorado, was in the business of acquiring distressed businesses
and trying to make them profitable.
The Commission's complaint seeks an order enjoining Vasko from violating
Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-
1 and from aiding and abetting violations of Section 13(a) of the
Exchange Act and Rule 13a-1, and imposing civil monetary penalties
pursuant to Section 21 (d)(3) of the Exchange Act.
Williamson, without admitting or denying the allegations of the
complaint, has agreed to a settlement whereby he would be permanently
enjoined from violating Sections 17(a) and 17(b) of the Securities Act,
Section 10(b) of the Exchange Act, and Rule 10b-5, and would pay a
$10,000 civil penalty. Schuchard, without admitting or denying the
allegations of the complaint, has agreed to a settlement whereby he
would be permanently enjoined from violating Section 17(a) of the
Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5, and
from aiding and abetting violations of Section 13(a) of the Exchange Act
and Rule 13a-1. Schuchard has consented to pay $11,558 in disgorgement,
representing illegal profits arising from his conduct, plus $4,784.58 in
prejudgment interest. Schuchard also has agreed, upon entry of the final
judgment in this action, to the issuance of a Commission order pursuant
to Sections 15(b)(6) and 19(h) of the Exchange Act that would bar him
from association with any broker or dealer. [SEC v. Timothy S. Vasko,
Edward B. Williamson, and Michael J. Schuchard, U.S. District Court for
the District of Colorado, C.A. No. 00-M-2592, December 29, 2000] (LR-
16855)
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