Received this EM today:
This is the answer to your nagging question about Conectisys and the litigation that
you were so worried about. Please post this on the Silicon Investor .. because I'm
not a member yet.
Thanks ... Cajundc@aol.com
gsionline.com
September 29, 1998
COMMISSION BARS MIKE ZAMAN; FINAL RELIEF ORDERED IN CONECTISYS CIVIL LITIGATION
The Commission today issued an Order permanently barring Mike Zaman
from association with any broker, dealer, investment adviser,
investment company or municipal securities dealer. The Commission's
Order was based upon the entry of a June 29, 1998, order by Judge
Mariana R. Pfaelzer of the United States District Court for the
Central District of California, enjoining Zaman from violating the
antifraud provisions of the federal securities laws as a result of
his role in the 1996 manipulation of the common stock of Conectisys
Corporation. Securities and Exchange Commission v. Andrew S. Pitt,
et al., Civ. Action No. 96-4164 (MRP) (C.D. Cal. filed June 17,
1996); Lit. Rel. Nos. 15909 (September 29, 1998), 15446 (August 18,
1997), 15272 (March 4, 1997), and 14947 (June 17, 1996). Zaman
consented to the issuance of the Commission's Order without
admitting or denying the findings contained in it other than the
fact that the U.S. District Court's injunction had been entered
against him.
The Commission's Order found that Zaman had owned, controlled and
directed the activities of Smith, Benton & Hughes, Inc. (Smith
Benton), then a registered broker-dealer. According to the Order,
as the court found, from February 14 through May 28, 1996, Zaman and
Smith Benton artificially increased the price of Conectisys
Corporation common stock purchased by retail customers. Among other
things, the Order further found that, according to the court's
findings, Zaman had manipulated the price of Conectisys stock by
engaging in so-called "daisy chain" trading with market participants
to fill retail customer orders, inducing broker-dealers to enter
arbitrary quotes, and frequently "marking the close," that is,
orchestrating end-of-day trades that were executed at the highest
price of the day. The common stock of Conectisys was publicly
traded on the over-the-counter market through the NASD Bulletin
Board.
Also, on September 22, the Commission obtained the final relief it
sought in its civil injunctive action stemming from the Conectisys
manipulation. The court permanently enjoined Conectisys Corporation
from future violations of the registration and antifraud provisions
of the Securities Act of 1933 and ordered Conectisys to disgorge
$175,000 in unlawful proceeds. The court previously had entered
judgments against defendants Zaman, B&M Capital Corp. (B&M), and
Smith Benton, enjoining each of them from violating the antifraud
provisions of the Securities Act and the Securities Exchange Act of
1934 and ordering Zaman, B&M, and Smith Benton, jointly and
severally, to disgorge $611,193 in unlawful proceeds. The Court
also enjoined Andrew S. Pitt and Devon Investment Advisors, Inc.
(Devon), from violating the Securities Act's registration
provisions, and enjoined Pitt from violating the Securities Act's
antifraud provisions. Pitt and Devon were ordered, jointly and
severally, to disgorge $399,980, and Pitt, jointly and severally
with Conectisys, was ordered to disgorge an additional $50,000.
(Administrative Proceeding in the Matter of Mike Zaman - Rel. 34-
40494, File No. 3-9737; [SEC v. Andrew S. Pitt, et al., Civ. Action
No. 96-4164, USDC, C.D. Cal., MRP, ANx] (LR-15909)
Robert... |
