From today's SEC Digest:
IN THE MATTER OF MICHAEL LESTER
On June 24, the Commission issued an Order Instituting Proceedings, Making Findings, And Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Order) against Michael Anthony Lester. The Order finds that On May 14, 2002, the United States District Court for the Southern District of New York, entered a final judgment against Lester in an action captioned SEC v. American Healthcare Providers, Inc. et. al., 01 cv 7649 (B.S.J.) (Injunctive Action), which, among other things, permanently enjoins Lester from future violations of Sections 17(a) and 17(b) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder. In the Injunctive Action, the Commission alleged, among other things: (a) that from at least April 2000 through June 14, 2000, Lester participated in a fraudulent unregistered distribution of American Healthcare common stock; (b) that at the time of the alleged misconduct, American Healthcare common stock was a penny stock, as used in Section 15(b)(6) and as defined by Section 3(a)(51) of the Exchange Act and Rule 3a51-1 thereunder; (c) that Lester promoted the sale of American Healthcare common stock by drafting press releases, maintaining websites and by posting messages on the Internet, which contained false and misleading information about American Healthcare's financial condition and business prospects; and (d) that Lester had agreed to receive unrestricted American Healthcare stock in exchange for promoting American Healthcare. American Healthcare stock was a "penny stock," as that term is used in Section 15(b)(6) and defined by Section 3(a)(51) of the Exchange Act and Rule 3a51-1 thereunder.
Based on the above, the Order bars Lester from participating in the offering of a penny stock. (Rel. 34-46107; File No. 3-10810)
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