From today's SEC Digest:
SEC SUES AMERICAN HEALTHCARE PROVIDERS, INC. AND FIVE INDIVIDUALS FOR ROLES IN INTERNET PUMP-AND-DUMP SCHEME
The Commission announced that it filed a civil injunctive action charging American Healthcare Providers, Inc. and five individuals for their roles in an Internet market manipulation scheme. The Commission's complaint alleges that American Healthcare was a start-up company with "headquarters" in the New York City apartment of one of the defendants, and had virtually no business operations. The Commission charges that after pumping up the price of American Healthcare stock through an extensive campaign of false statements in press releases, Internet message board postings, and the company's website, certain of the defendants sold their American Healthcare stock to the public, reaping at least $1.47 million in illicit gains.
Charged in the Commission's complaint filed in the U.S. District Court for the Southern District of New York, were the following: Angel L. Lorie, age 58, of Miami, Florida, a recidivist securities law violator and a purported "consultant" to American Healthcare; Luis F. Lorie, age 35, of Miami, Florida, the son of Angel Lorie; Arthur W. Wheeler, age 53, of New York City, the Chairman and Chief Executive Officer of American Healthcare; Lars M. Kram, age 63, of New York City, President of American Healthcare and a member of its Board of Directors until September 2000; Michael Anthony Lester, age 41, of Huntsville, Alabama, an "investor relations" and Internet consultant and, after September 2000, President of American Healthcare; and American Healthcare, a Delaware corporation headquartered in Wheeler's apartment.
The Commission seeks the following relief: (i) permanent injunctions from further violations of the antifraud, registration, and antitouting provisions of the federal securities laws (Sections 5(a) and (c) and 17(a) and (b) of the Securities Act of 1933, and Section 10(b) of the Exchange Act, and Rule 10(b)(5) thereunder); (ii) a permanent injunction against Angel Lorie against further violations of a Commission Order prohibiting Angel Lorie from participation in a penny stock offering and from Section 15(b) of the Exchange Act; (iii) disgorgement from Wheeler, Kram, Angel Lorie, and Luis Lorie; (iv) civil monetary penalties against Wheeler, Kram, Angel Lorie, Luis Lorie, and Lester; and (v) an order barring Wheeler, Kram, Angel Lorie, Luis Lorie, and Lester from serving as officers or directors of a public company.
On June 15, 2000, the SEC issued a ten-day suspension of trading in the securities of American Healthcare because of questions raised about the accuracy of publicly disseminated information concerning American Healthcare. The trading suspension followed a press release by American Healthcare in May 2000 in which American Healthcare announced an exclusive multi-million dollar contract with the New York City Link program, a service that seeks to ensure that mentally ill patients from New York City prisons receive necessary treatment and medication. The Commission's complaint alleges that the press release was false and that no such contract ever existed. [SEC v. American Healthcare Providers, Inc., Arthur W. Wheeler, Lars M. Kram, Angel L. Lorie Jr., Luis F. Lorie and Michael Anthony Lester, 01 CV 7649, BSJ, SDNY] (LR-17104)
sec.gov |
