UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7597 / October 27, 1998
ADMINISTRATIVE PROCEEDING
File No. 3-9764
____________________________________
:
In the Matter of : ORDER INSTITUTING PUBLIC
: PROCEEDINGS PURSUANT TO
DONALD A. BAILLARGEON, : SECTION 8A OF THE SECURITIES
individually and d/b/a : ACT OF 1933, MAKING FINDINGS,
EMERGING COMPANY REPORT, : AND IMPOSING A CEASE-AND-
: DESIST ORDER
Respondent. :
____________________________________:
I.
The Securities and Exchange Commission ("Commission") deems
it appropriate to institute public cease and desist proceedings
against Donald A. Baillargeon ("Baillargeon"), individually and
doing business as Emerging Company Report ("ECReport"), pursuant
to Section 8A of the Securities Act of 1933 ("Securities Act").
In anticipation of the institution of these proceedings,
Baillargeon has submitted an Offer of Settlement ("Offer"), which
the Commission has determined to accept. Solely for the purpose
of these proceedings and any other proceedings brought by or on
behalf of the Commission or in which the Commission is a party,
and without admitting or denying the findings herein, except that
Baillargeon admits the Commission's jurisdiction over him and
over the subject matter of these proceedings, Baillargeon has
consented to the entry of this Order Instituting Public
Proceedings Pursuant to Section 8A of the Securities Act of 1933,
Making Findings and Imposing a Cease-and-Desist Order ("Order")
and to the imposition of the cease-and-desist order set forth
below.
II.
On the basis of this Order and the Offer submitted by
Baillargeon, the Commission finds that:
A. Donald A. Baillargeon, a resident of Los Angeles,
California, has produced a cable television show called
"Emerging Company Report," an ECReport web page, and an
ECReport newsletter (collectively, the "ECReport Media")
from 1997 to the present. Baillargeon is solely responsible
for the content of the ECReport Media.
B. In addition to producing it, Baillargeon is also a co-
anchor of the ECReport television show. That show runs on a
weekly basis and is re-broadcast four times each week.
"Emerging Company Report" is shown on more than 140 cable
television systems in more than 125 cities.
C. From at least May 1997 through September 1998,
Baillargeon committed or caused violations of Section 17(b)
of the Securities Act in that, by the use of means or
instruments of transportation or communication in interstate
commerce or by use of the mails, he published, gave
publicity to, or circulated notices, circulars,
advertisements, newspapers, articles, letters, investment
services, or communications which, though not purporting to
offer a security for sale, described securities for a
consideration received or to be received, directly or
indirectly, from an issuer, underwriter or dealer, without
fully disclosing the receipt, whether past or prospective,
of such consideration and the amount thereof.
D. As part of and in furtherance of such conduct and
activities, Baillargeon publicized more than fifty
securities in the ECReport Media. Baillargeon sold to the
issuers of these securities "guest appearance packages,"
which included a ten-minute guest appearance for the issuer
on one ECReport television program, one-minute "vignettes"
of the guest appearance on the next three programs, and
updates on the issuer's stock price on the next thirteen
programs. The package also typically included a company
profile in two issues of the ECReport newsletter and three
months of internet site promotion and linking from the
ECReport web page. For some issuers, Baillargeon also
agreed to provide a national press release via Business
Wire.
E. As part of and in furtherance of such conduct and
activities, Baillargeon received, directly or indirectly,
compensation ranging from $2500 to $17,000 for each guest
appearance package sold. Baillargeon did not disclose in
the ECReport Media the amount of money he had received from
the issuers to publicize their companies and stock.
F. As part of and in furtherance of such conduct and
activities, Baillargeon also received, directly or
indirectly, compensation in the form of stock from two
issuers publicized in the ECReport Media. Baillargeon did
not disclose in the ECReport Media that he had received,
directly or indirectly, compensation in the form of stock,
nor did he disclose the type, amount, or value of the stock
he received.
III.
In view of the foregoing, the Commission finds that it is
appropriate to impose the sanctions specified in the Offer.
Accordingly, IT IS ORDERED, pursuant to Section 8A of the
Securities Act, that Baillargeon cease and desist from committing
or causing any violation and any future violation of Section
17(b) of the Securities Act.
By the Commission.
Jonathan G. Katz
Secretary |
