FYI - From today's SEC digest:
IN THE MATTER OF J. DOUGLAS ELLIOTT
The Commission announced that J. Douglas Elliott (Elliott) of North
York, Ontario, Canada, consented to the entry of an administrative
proceeding order finding that Elliott knew or should have known that
he caused Dimples Group, Inc. (Dimples) to make material
misrepresentations and omissions in violation of antifraud
provisions of the federal securities laws during 1991 and 1992. The
administrative order directs Elliott to cease and desist from
committing or causing any violations or future violations of the
antifraud provisions of the federal securities laws, Section 10(b)
of the Exchange Act and SEC Rule 10b-5. As part of the settlement,
the Commission agreed to dismiss its previously filed lawsuit
against Elliott in the United States District Court for the Northern
District of California.
From May 1990 until July 1997, Elliott was the president and
chairman of the board of directors of Dimples, a now defunct
Canadian corporation that sold cloth diapers in Canada and the
United States during the early 1990s. Dimples Group Inc.'s stock
was traded on the Vancouver Stock Exchange and the OTC Bulletin
Board until July 1994, when it was delisted. Elliott is a licensed
lawyer and currently is the chairman and president of Power Plus
Corp., a public company based in Ontario, Canada, that trades on the
Alberta Stock Exchange and in the United States on the OTC Bulletin
Board.The Commission's administrative order finds that Elliott, among
others, orchestrated a campaign in the United States to solicit U.S.
investors and stock brokers to buy Dimples common stock and that
Elliott falsely represented in press releases and newsletters
distributed to investors throughout the United States in 1991 and
1992 that Dimples would generate between $25 million and $35 million
in revenues during the first year of its product sales in the U.S.;
Dimples' redesigned diaper had been successfully test-marketed in
upstate New York, generating $1 million in sales; Dimples' supplier
was financing production of all of its inventory; and Dimples had
ensured through private placements that it was adequately financed
to market its product successfully in the United States. The
Commission's order finds that Elliott knew or should have known that
these statements were false and that, by his conduct, Elliott caused
Dimples to violate the antifraud provisions of the federal
securities laws. (Rel. 34-40043; File No. 3-9614)
sec.gov
|
