Funny that Valentine was pumping JAG stock....so much
for the Naked SS angle the CO has argued
=================================================
"The count of the criminal indictment to which Valentine pleaded guilty alleged, among other things, that Valentine and another defendant conspired to unjustly enrich themselves by defrauding a fictitious foreign mutual fund (Fund) through paying undisclosed payoffs and kickbacks to brokers in exchange for causing the Fund to purchase large amounts of overpriced C-Me-Run, SoftQuad, and JagNotes stocks. The count of the criminal indictment further allegedthat it was also the object of the conspiracy for the defendants to unjustly enrich themselves bydefrauding the shareholders of C-Me-Run, SoftQuad, and JagNotes by artificially inflating the market price of these stocks through illegal means."
sec.gov
===================================================================
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Washington, DC
SECURITIES EXCHANGE ACT OF 1934
Release No. 53683/April 20, 2006
ADMINISTRATIVE PROCEEDING
File No. 3-12153
___________________________________
In the Matter of :
: ORDER MAKING FINDINGS
PAUL D. LEMMON, : AND IMPOSING REMEDIAL
MARK VALENTINE , and : SANCTION BY DEFAULT AS TO
MICHAEL VLAHOVIC : MARK VALENTINE
___________________________________
The Securities and Exchange Commission (Commission) issued its Order Instituting
Proceedings (OIP) on January 20, 2006. Respondent Mark Valentine (Valentine) was served
with the OIP on March 2, 2006, and his Answer was due twenty days thereafter. See OIP at 3;
17 C.F.R. § 201.220. To date, Valentine has not filed an Answer. Valentine also failed to
appear at the prehearing conference held on March 23, 2006.
On March 31, 2006, the Division of Enforcement filed a motion for default against
Valentine, based on his failure to file an Answer or otherwise appear. On April 6, 2006, I issued
an order requiring Valentine to show cause by April 14, 2006, why he should not be held in
default and why he should not be barred from participating in an offering of penny stock. To
date, Valentine has failed to respond to the Division of Enforcement’s motion for default and to
my order to show cause.
Valentine is in default for failing to file an Answer to the OIP, failing to appear at a
prehearing conference, and failing to otherwise defend the proceeding. See 17 C.F.R. §§
201.155, .220, .221. As authorized by Rule 155(a) of the Commission’s Rules of Practice, 17
C.F.R. § 201.155(a), I find the following allegations in the OIP to be true as to Valentine.
Valentine, age thirty-five, is a resident of Toronto, Ontario, Canada. Valentine was the
chairman of Thomson Kernaghan & Co., a securities broker-dealer located in Ontario, Canada.
Valentine controlled a significant amount of C-Me-Run, Inc. (C-Me-Run), SoftQuad, Ltd.
(SoftQuad), and JagNotes.com, Inc. (JagNotes), stocks. Valentine participated in an offering of
C-Me-Run, SoftQuad, and JagNotes stocks, which are penny stocks.
On March 10, 2004, Valentine pleaded guilty to one count of securities fraud in violation
of Title 15 of the United States Code, Section 78j(b) and 78ff, before the United States District
Court for the Southern District of Florida, in United States v. Valentine, Criminal Indictment No.
02-80088-CR-Cohn. On May 21, 2004, a judgment in the criminal case was entered against
Valentine. Valentine was sentenced to four years of probation with nine months of home
detention and other special conditions of supervision and ordered to pay a $100 assessment to the
court.
The count of the criminal indictment to which Valentine pleaded guilty alleged, among
other things, that Valentine and another defendant conspired to unjustly enrich themselves by
defrauding a fictitious foreign mutual fund (Fund) through paying undisclosed payoffs and
kickbacks to brokers in exchange for causing the Fund to purchase large amounts of overpriced
C-Me-Run, SoftQuad, and JagNotes stocks. The count of the criminal indictment further alleged
that it was also the object of the conspiracy for the defendants to unjustly enrich themselves by
defrauding the shareholders of C-Me-Run, SoftQuad, and JagNotes by artificially inflating the
market price of these stocks through illegal means.
Based on the foregoing, I find it appropriate in the public interest to bar Valentine from
participating in an offering of penny stock.
ORDER
IT IS ORDERED, pursuant to Section 15(b) of the Securities Exchange Act of 1934, that
Respondent Mark Valentine is hereby BARRED from participating in an offering of penny
stock.
_______________________________
Lillian A. McEwen
Administrative Law Judge
2 |
