Better late than never?
Is there any news on Rhonda?
SEC INSTITUTES ADMINISTRATIVE PROCEEDING AGAINST MARK SCHULTZ BASED ON ENTRY OF INJUNCTIONS
On Jan. 10, the Commission instituted an administrative proceeding against Mark Schultz, a resident of Fuengirola, Spain, based on the entry of injunctions against him.
In the Order Instituting Proceedings, the Division of Enforcement alleges, inter alia, that a U.S. District Court entered default injunctions against Schultz. SEC v. Mark Schultz, No. 00 Civ. 3443 (S.D.N.Y.) (July 10, 2002) (MP). The injunctions were based on the Commission's allegations in the District Court matter that between 1995 and 1998, Schultz made fraudulent misrepresentations in violation of federal securities laws. According to the Complaint in the District Court matter, Schultz failed to disclose that he was paid by companies to recommend their stocks and that his advice was not based on independent analysis. The Complaint also alleged that Schultz failed to disclose that he intended to sell and in fact sold stock of certain companies at the same time that he recommended that readers of his publication by the companies' stocks. The companies that paid Schultz to promote their common stocks were penny stocks as defined in Section 3(a)(51)(A) of the Securities Exchange Act of 1934. In addition to the injunctions, the District Court ordered Schultz to pay disgorgement of $566,035.93, prejudgment interest of $300,871.22 and a civil penalty of $110,000.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Schultz an opportunity to dispute these allegations, and to determine whether a penny stock bar is appropriate and in the public interest. (Rel. 34-47154; File No. 3-11005)
sec.gov |
