>>>>>>I don't think the SEC is the answer as they seem to
>>>>>>have their hands full with higher level fraud.
Gosh Lee I guess you must have missed my earlier post where I not only suggested how you could resolve the issue, but even showed you that the SEC wants you to do so. They will even pay you if you are right.
Did you miss this along with my bet, or did you get your SECRET E-MAIL?
ARE YOU AFRAID THAT THEY WILL COME AFTER YOUR FRIENDS, OR YOU? I HAVE NOTHING TO FEAR FROM THE SEC!
==================
To: +Lee Kennedy (6717 )
From: +Rick
Oct 9 1997 3:32PM EST
Reply #6718 of 6735
Lee,
I know that you have good computer skills.
So do this go back over the last thirty days
and assemble all of my links here just like
I did on the others. Then put all of those links
into an email message. Send that message asking
the SEC to look into what is going on here.
enforcement@sec.gov
They don't care whether any Hypster owns or
doesn't own the stock the issue is whether they
are trying to cause an artificial movement in price
either up or down.
Just a little side bet between you and me Lee.
I'll bet you get a SECTET E-MAIL order to
NOT do this and that you get blasted for being
my MINION. If I win that bet DO YOU HAVE
THE STONES TO POST THE E-MAIL?
PS. Can you do it faster than you have been able
to contact RUPERT? <|;Q)
PPS Lee there might even be something in it for YOU!
===========================================
Insider Trading: Information on
Bounties
Section 21A(e) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C.
78u-l(e)]
authorizes the Securities and Exchange Commission ("Commission") to award a bounty
to a person
who provides information leading to the recovery of a civil penalty from an insider
trader, from a
person who "tipped" information to an insider trader, or from a person who directly or
indirectly
controlled an insider trader. This pamphlet is designed to provide interested persons
with
information on bounties and the Commission's rules for making a bounty application.
Section
21A(e) of the Exchange Act and the Commission's bounty rules are set out at the end
of this
pamphlet.
What is "Insider Trading?"
"Insider trading" refers generally to buying or selling a security, in breach of a fiduciary
duty or other
relationship of trust and confidence, while in possession of material, nonpublic
information about the
security. Insider trading violations may also include "tipping" such information, securities
trading by
the person "tipped" and securities trading by those who misappropriate such
information. Examples
of insider trading cases that have been brought by the Commission are cases against:
corporate
officers, directors, and employees who traded the corporation's securities after learning
of
significant, confidential corporate developments; friends, business associates, family
members, and
other "tippees" of such officers, directors, and employees, who traded the securities
after receiving
such information; employees of law, banking, brokerage and printing firms who were
given such
information in order to provide services to the corporation whose securities they
traded;
government employees who learned of such information because of their employment
by the
government; and other persons who misappropriated, and took advantage of,
confidential
information from their employers.
Because insider trading undermines investor confidence in the fairness and integrity of
the securities
markets, the Commission has treated the detection and prosecution of insider trading
violations as
one of its enforcement priorities.
How Much May be Paid as a Bounty?
Insider trading may result in enforcement action by the Commission or in criminal
prosecution by
the Department of Justice. The Exchange Act permits the Commission to bring suit
against insider
traders to seek injunctions, which are court orders that prohibit violations of the law
under threat of
fines and imprisonment. The Commission may also seek other relief against insider
traders,
including recovery of any illegal gains (or losses avoided) and payment of a civil
penalty. The
amount of a civil penalty can be up to three times the profit gained (or loss avoided) as
a result of
insider trading.
The Commission is permitted to make bounty awards from the civil penalties that are
actually
recovered from violators. With minor exceptions, any person who provides information
leading to
the imposition of a civil penalty may be paid a bounty. However the total amount of
bounties that
may be paid from a civil penalty may not exceed ten percent of that penalty.
How Will the Commission Make Bounty Determinations?
All Commission determinations regarding bounties including whether to make a
payment, to whom
a payment shall be made, and the amount of a payment (if any), are in the sole
discretion of the
Commission. Any such determination is final and not subject to judicial review. Nothing
in the
Commission's rules or in this pamphlet is intended to limit the Commission's discretion
with respect
to bounties.
In making determinations regarding bounty applications the Commission will be guided
by the
purposes of the bounty provisions. These purposes include the intent of the United
States Congress
to encourage persons with information about possible insider trading to come forward.
The
Commission will also consider other factors that it deems relevant. Examples of other
factors that
may be relevant are: the importance of the information provided by an applicant;
whether the
information was provided voluntarily; the existence of other applications in the matter;
and the
amount of the penalty from which bounties may be paid.
Normally, the Commission will not make any determination on a bounty application
until a payment
of a penalty is both ordered by a court and recovered. A person who files an
application meeting
the requirements of the Commission's rules will be notified of the Commission's
determination on
the application.
How and When Do You Apply for a Bounty?
An application must be clearly marked as an "Application for Award of a Bounty," and
must
contain the information required by the Commission's rules. The application must give a
detailed
statement of the information that the applicant has about the suspected insider trading.
Any person who desires to provide information to the Commission that may result in
the payment
of a bounty may do so by any means desired. The Commission encourages persons
having
information regarding insider trading to provide that information in writing, either at the
time they
initially provide the information to the Commission or as soon as possible afterwards.
Providing
information in writing reduces the possibility of error, helps assure that appropriate
action will be
taken, and minimizes subsequent burdens and the possibility of factual disputes. In any
event, a
written application for a bounty must be filed within 180 days after the day on which
the court
orders payment of the civil penalty.
Can You Apply for a Bounty Anonymously?
The Commission recognizes that there may be instances when a bounty applicant
wishes to remain
temporarily anonymous. The bounty rules take these instances into account. While the
Commission
will only award bounties to applicants who provide their identity and mailing address,
that
information may be added by a later amendment to the application. The amendment
must be filed
within 180 days after the entry of the court order requiring the payment of the penalty
upon which
the bounty is based. An anonymous applicant who fails to file such an amendment (and
anyone who
fails to make a written application) runs the risk of losing eligibility for a bounty through
lapse of
time and ignorance of the fact that a penalty has been recovered.
Absent compelling cause, the Commission ordinarily does not disclose the identity of a
confidential
source. In some instances however disclosure of that identity will be legally required, or
will be
essential for the protection of the public interest. For example, a court may order
disclosure during
litigation, or the Commission may need to present the testimony of a bounty claimant to
ensure the
success of an enforcement action. Consequently while the Commission and its staff will
give serious
consideration to requests to maintain the confidentiality of a source's identity, no
guarantees of
confidentiality are possible.
Statutory and Regulatory Provisions
Section 21A(e) of the Exchange Act
[T]here shall be paid from amounts imposed as a penalty under this section and
recovered by the
Commission or the Attorney General, such sums, not to exceed 10 percent of such
amounts, as the
Commission deems appropriate to the person or persons who provide information
leading to the
imposition of such penalty. Any determinations under this subsection, including
whether, to whom,
or in what amount to make payment, shall be in the sole discretion of the Commission,
except that
no such payment shall be made to any member, officer, or employee of any
appropriate regulatory
agency, the Department of Justice, or a self-regulatory organization. Any such
determination shall
be final and not subject to judicial review.
Subpart C of Part 201 of Title 17 of the Code of Federal Regulations
Procedures Pertaining to the Payment of Bounties Pursuant to Subsection 21A(e) of
the Securities
Exchange Act of 1934
Rule 61 Scope of subpart
Section 21A of the Securities Exchange Act of 1934 authorizes the courts to impose
civil penalties
for certain violations of that Act. Subsection 21A(e) permits the Commission to award
bounties to
persons who provide information that leads to the imposition of such penalties. Any
such
determination, including whether, to whom, or in what amount to make payments, is in
the sole
discretion of the Commission. This subpart sets forth procedures regarding applications
for the
award of bounties pursuant to subsection 21A(e). Nothing in this subpart shall be
deemed to limit
the discretion of the Commission with respect to determinations under subsection
21A(e) or to
subject any such determination to judicial review.
Rule 62 Application required.
No person shall be eligible for the payment of a bounty under subsection 21A(e) of the
Securities
Exchange Act of 1934 unless such person has filed a written application that meets the
requirements of this subpart and, upon request, provides such other information as the
Commission
or its staff deems relevant to the application.
Rule 63 Time and place of filing.
Each application pursuant to this subpart and each amendment thereto must be filed
within one
hundred eighty days after the entry of the court order requiring the payment of the
penalty that is
subject to the application. Such applications and amendments shall be addressed to:
Office of the
Secretary, Securities and Exchange Commission, 450 Fifth Street N.W., Washington,
D.C.,
20549.
Rule 64 Form of application and information required.
Each application pursuant to this subpart shall be identified as an Application for
Award of a
Bounty and shall contain a detailed statement of the information provided by the
applicant that the
applicant believes led or may lead to the imposition of a penalty. Except as provided
by Rule 65 of
this subpart, each application shall state the identity and mailing address of, and be
signed by, the
applicant. When the application is not the means by which the applicant initially
provides such
information, each application shall contain: the dates and times upon which, and the
means by
which, the information was provided; the identity of the Commission staff members to
whom the
information was provided; and, if the information was provided anonymously, sufficient
further
information to confirm that the person filing the application is the same person who
provided the
information to the Commission.
Rule 65 Identity and signature.
Applications pursuant to this subpart may omit the identity, mailing address, and
signature of the
applicant; provided that such identity, mailing address and signature are submitted by
an
amendment to the application. Any such amendment must be filed within one hundred
eighty days
after the entry of the court order requiring the payment of the penalty that is subject to
the
application.
Rule 66 Notice to applicants.
The Commission will notify each person who files an application that meets the
requirements of this
subpart, at the address specified in such application, of the Commission's determination
with
respect to such person's application. Nothing in this subpart shall be deemed to entitle
any person
to any other notice from the Commission or its staff.
Rule 67 Applications by legal guardians.
An application pursuant to this subpart may be filed by an executor, administrator, or
other legal
representative of a person who provides information that may be subject to a bounty
payment or
by the parent or guardian of such a person if that person is a minor. Certified copies of
the letters
testamentary, letters of administration, or other similar evidence showing the authority
of the legal
representative to file the application must be annexed to the application.
Rule 68 No promises of payment.
No person is authorized under this subpart to make any offer or promise, or otherwise
to bind the
Commission with respect to the payment of any bounty or the amount thereof.
Source: SEC Form 2222 (6-89) |
