HOME SOLUTIONS OF AMERICA, INC./REVOKING REGISTRATION BY DEFAULT
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UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES EXCHANGE ACT OF 1934
Release No. 61285 /January 5, 2010
ADMINISTRATIVE PROCEEDING
File No. 3-13699
In the Matter of :
HOME SOLUTIONS OF AMERICA, INC. :
ORDER MAKING FINDINGS AND
: REVOKING REGISTRATION BY DEFAULT
SUMMARY
This Order revokes the registration of the registered securities of Respondent Home Solutions of America, Inc. (Home Solutions). The revocation is based on Home Solutions’ repeated failure to file required periodic reports with the Securities and Exchange Commission (Commission).
I. BACKGROUND
The Commission initiated this proceeding on November 30, 2009, with an Order Instituting Proceedings (OIP), pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act). The OIP alleges that Home Solutions is a corporation with a class of securities registered with the Commission pursuant to Section 12(g) of the Exchange Act and that it has repeatedly failed to file with the Commission annual and quarterly reports in compliance with the Exchange Act. Home Solutions was served with the OIP in accordance with 17 C.F.R. § 201.141(a)(2)(ii) on December 10, 2009.1 To date, it has failed to file an Answer to the OIP, due twenty days after service. See OIP at 2; 17 C.F.R. § 201.220(b). Thus, Home Solutions has failed to answer or otherwise to defend the proceeding within the meaning of 17 C.F.R. § 201.155(a)(2). Accordingly, Home Solutions is in default, and the undersigned finds the allegations in the OIP to be true. See OIP at 2; 17 C.F.R. §§ 201.155(a), .220(f). Official notice has been taken of the Commission’s public official records concerning Home Solutions, pursuant to 17 C.F.R. § 201.323.
1 Home Solutions was served with the OIP by USPS Express Mail attempted delivery at “the most recent address shown on [its] most recent filing with the Commission.” 17 C.F.R. § 201.141(a)(2)(ii).
II. FINDINGS OF FACT
Home Solutions is a Delaware corporation that has maintained its headquarters in Dallas, Texas, and New Orleans, Louisiana. Home Solutions has been in the remediation and construction business. Its common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act. Home Solutions is delinquent in its periodic filings with the Commission and has repeatedly failed to meet its obligation to file timely reports, having not filed any periodic reports since it filed, in August 2007, a Form 10-Q for the quarter ended June 30, 2007.
III. CONCLUSIONS OF LAW
By failing to file required annual and quarterly reports, Home Solutions violated Exchange Act Section 13(a) and Rules 13a-1 and 13a-13.
IV. SANCTION
Revocation of the registration of the registered securities of Home Solutions will serve the public interest and the protection of investors, pursuant to Section 12(j) of the Exchange Act. Revocation will help ensure that the corporate shell is not later put to an illicit use involving publicly traded securities manipulated to the detriment of market participants. Further, revocation accords with Commission sanction considerations set forth in Gateway Int’l Holdings, Inc., 88 SEC Docket 430, 438-39 (May 31, 2006) (citing Steadman v. SEC, 603 F.2d 1126, 1139-40 (5th Cir. 1979)), and with the sanctions imposed in similar cases in which corporations violated Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 by failing to file required annual and quarterly reports. See Eagletech Commc’ns, Inc., 88 SEC Docket 1225 (July 5, 2006); Neurotech Dev. Corp., 84 SEC Docket 3938 (A.L.J. Mar. 1, 2005); Hamilton Bancorp, Inc., 79 SEC Docket 2680 (A.L.J. Feb. 24, 2003); WSF Corp., 77 SEC Docket 1831 (A.L.J. May 8, 2002). Home Solutions’ violations were recurrent, egregious, and deprived the investing public of current and accurate financial information on which to make informed decisions.
Failure to file periodic reports violates a crucial provision of the Exchange Act. The purpose of the periodic reporting requirements is to publicly disclose current, accurate financial information about an issuer so that investors may make informed decisions:
The reporting requirements of the Securities Exchange Act of 1934 is the primary tool which Congress has fashioned for the protection of investors from negligent, careless, and deliberate misrepresentations in the sale of stock and securities. Congress has extended the reporting requirements even to companies which are “relatively unknown and insubstantial.”
SEC v. Beisinger Indus. Corp., 552 F.2d 15, 18 (1st Cir. 1977) (quoting legislative history); accord e-Smart Techs., Inc., 57 S.E.C. 964, 968-69 (2004). The Commission has warned that “many publicly traded companies that fail to file on a timely basis are ‘shell companies’ and, as
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such, attractive vehicles for fraudulent stock manipulation schemes.” e-Smart Techs., Inc., 57 S.E.C. at 968-69 n.14.
V. ORDER
IT IS ORDERED that, pursuant to Section 12(j) of the Securities Exchange Act of 1934, 15 U.S.C. § 78l(j), the REGISTRATION of the registered securities of Home Solutions of America, Inc., is REVOKED.
______________________________
Carol Fox Foelak
Administrative Law Judge |
