Paul, here's some clips from that massive link you posted on the DGIV thread about INFE: (preface: Alex shindman is/was an MM, he worked in concert with a brokerage firm under the mgmt of Moshe Rimson. ALL OF THE ILLEGAL ACTIONS TOOK PLACE 3 OR MORE YEARS AGO)
To DGIVERS: This has nothing to do with DGIV, it has to do with Paul's (intentional?) omissions that further undermine his credibility.
"From about September 1993 through about July 1995, Shindman
willfully violated Section 17(a) of the Securities Act and
Section 10(b) of the Exchange Act and Rule 10b-5 thereunder by
making material misrepresentations and omissions in connection
with the offer and sale of INFE, LARI, TWIP, BTLI, LBTI, and
CECE. As detailed in the findings of fact, he violated the
statutes and rules by: making baseless price predictions;
falsely representing that these securities would commence trading
on the NASD s OTCBB within specified periods of time; falsely
stating that INFE and other securities would trade on Nasdaq;
making exaggerated and false statements concerning INFE s
business, assets, and earnings; disseminating false or misleading
written materials concerning the securities, and falsely
representing to customers that copies of the prospectus were
unavailable; and making other materially false or misleading
statements or omissions in connection with the offer, purchase,
or sale of these securities.
Here's more:
The disgorgement calculation for the fourth security, INFE, was based on
Shindman s own approximation of his sales in that security. The
Division contends, therefore, that the estimated ill-gotten gains
derived by Shindman from the sales of these securities, plus the
amount of losses sustained by the customers who testified,
constitute the appropriate and uncontroverted measures upon which
to base a disgorgement order. Thus, it requests disgorgement as
to Shindman in the amount of $323,850.65.
Shindman claims, however, that the Division based its
disgorgement calculation on the total amounts customers paid to
Rimson & Co. for a given stock. In addition, Shindman argues
that the Division based its calculations on Rimson & Co. s books
and records, which the Division itself claims are inaccurate.
Finally, he contends that the Division has not proved that any of
the sales were made through the use of false or misleading
statements. He argues, therefore, that if disgorgement is
ordered, the disgorgement amount should equal only the
commissions he earned in connection with the securities sold to
the eight investors who testified at the hearing. Thus,
according to Shindman, disgorgement, if ordered, should total
only $2,848.13.
I agree with Shindman s assessment of the $2,848.13
disgorgement figure as to him. Table 1 in the findings of fact
shows the bases for the final figure. Because Shindman did not
have a financial stake in the corporation, and because he was not
a principal, the proper figure should consist of his admitted
earnings on the securities that he sold to the eight customers
who testified at the hearing.
And more...
IX. ORDER
Based on the findings and conclusions set forth above:
I ORDER, pursuant to Section 15(b) of the Exchange Act, that
Alex David Shindman be, and hereby is, barred from being
==========================================START OF PAGE 63======
associated with a broker or dealer;
I ORDER, pursuant to Section 19(h) of the Exchange Act, that
Alex David Shindman be, and hereby is, barred from being
associated with a member of a national securities exchange or
registered securities association;
I ORDER, pursuant to Section 15(b)(6) of the Exchange Act,
that Alex David Shindman be, and hereby is, barred from
participating in an offering of penny stock;
I ORDER, pursuant to Section 8A of the Securities Act and
Section 21C of the Exchange Act, that Alex David Shindman cease
and desist from committing or causing violations or future
violations of Section 17(a) of the Securities Act, Section 10(b)
of the Exchange Act and Rule 10b-5 thereunder, and Section 17(a)
of the Exchange Act and Rule 17a-3 thereunder;
I ORDER, pursuant to Section 21C of the Exchange Act, that
Alex David Shindman disgorge $2,848.13, plus prejudgment interest
from July 1, 1995, through the last day of the month preceding
which payment is made at the rate of interest established under
Section 6621(a)(2) of the Internal Revenue Code, 28 U.S.C
6621(a)(2), compounded quarterly, pursuant to Rule 610 of the
Commission s Rules of Practice;
I ORDER, pursuant to Section 21B of the Exchange Act, that
Alex David Shindman pay a penalty in the amount of $400,000;
Payment should be made on the first day after this decision
becomes final. Such payment shall be: (i) made by United States
postal money order, certified check, bank cashier s check, or
bank money order; (ii) made payable to the Securities and
Exchange Commission; (iii) delivered by hand or courier to the
Office of the Secretary, Securities and Exchange Commission, 450
Fifth Street, NW, Washington, DC 20549; and (iv) submitted under
cover letter which identifies Alex David Shindman as a Respondent
in these proceedings, and 3-8772 as the file number of these
proceedings;
If and when Alex David Shindman pays any or all of the
disgorgement amount and interest, the parties shall submit to the
Office of Administrative Law Judges, within 60 days, a plan for
the administration and distribution of those funds;
I ORDER, pursuant to Section 15(b) of the Exchange Act, that
Moshe Rimson be, and hereby is, barred from being associated with
a broker or dealer;
I ORDER, pursuant to Section 19(h) of the Exchange Act, that
Moshe Rimson be, and hereby is, barred from being associated with
a member of a national securities exchange or registered
==========================================START OF PAGE 64======
securities association;
I ORDER, pursuant to Section 15(b)(6) of the Exchange Act,
that Moshe Rimson be, and hereby is, barred from participating in
an offering of penny stock;
I ORDER, pursuant to Section 8A of the Securities Act and
Section 21C of the Exchange Act, that Moshe Rimson cease and
desist from committing or causing violations or future violations
of Section 17(a) of the Securities Act, Section 10(b) of the
Exchange Act and Rule 10b-5 thereunder, Section 15(a) of the
Exchange Act, Section 15(b) of the Exchange Act and Rule 15b7-1
thereunder, Section 15(c) of the Exchange Act and Rule 15c1-2
thereunder, Section 15(g) of the Exchange Act and Rules 15g-2
through 15g-6 and 15g-9 thereunder, Sections 17(a) of the
Exchange Act and Rules 17a-3 and 17a-4 thereunder, and Section
17(b) of the Exchange Act;
I ORDER, pursuant to Section 21B of the Exchange Act, that
Moshe Rimson pay a penalty in the amount of $1,900,000;
I ORDER, pursuant to Section 15(b) of the Exchange Act, that
the broker-dealer registration of Rimson & Co. be, and hereby is,
revoked;
I ORDER, pursuant to Section 19(h) of the Exchange Act, that
Rimson & Co. be, and hereby is, barred from being associated with
a member of a national securities exchange or registered
securities association;
I ORDER, pursuant to Section 8A of the Securities Act and
Section 21C of the Exchange Act, that Rimson & Co. cease and
desist from committing or causing violations or future violations
of Section 17(a) of the Securities Act, Section 10(b) of the
Exchange Act and Rule 10b-5 thereunder, Section 15(a) of the
Exchange Act, Section 15(b) of the Exchange Act and Rule 15b7-1
thereunder, Section 15(c) of the Exchange Act and Rule 15c1-2
thereunder, Section 15(g) of the Exchange Act and Rules 15g-2
through 15g-6 and 15g-9 thereunder, Sections 17(a) of the
Exchange Act and Rules 17a-3 and 17a-4 thereunder, and Section
17(b) of the Exchange Act;
I ORDER, pursuant to Section 21B of the Exchange Act, that
Rimson & Co. pay a penalty in the amount of $9,500,000;
I ORDER, pursuant to Section 21C of the Exchange Act, that
Rimson & Co. and Moshe Rimson, jointly and severally, disgorge
$730,000, plus prejudgment interest from September 1, 1995,
through the last day of the month preceding which payment is made
at the rate of interest established under Section 6621(a)(2) of
the Internal Revenue Code, 28 U.S.C. 6621(a)(2), compounded
quarterly, pursuant to Rule 610 of the Commission s Rules of
==========================================START OF PAGE 65======
Practice;
Payment should be made on the first day after this decision
becomes final. Such payment shall be: (i) made by United States
postal money order, certified check, bank cashier s check, or
bank money order; (ii) made payable to the Securities and
Exchange Commission; (iii) delivered by hand or courier to the
Office of the Secretary, Securities and Exchange Commission, 450
Fifth Street, NW, Washington, DC 20549; and (iv) submitted under
cover letter which identifies Rimson & Co. and Moshe Rimson as
Respondents in these proceedings, and 3-8772 as the file number
of these proceedings;
If and when Rimson & Co. and/or Moshe Rimson pays any or all
of the disgorgement amount and interest, the parties shall submit
to the Office of Administrative Law Judges, within 60 days, a
plan for the administration and distribution of those funds.
This Order shall become effective in accordance with and
subject to the provisions of Rule 360 of the Commission's Rules
of Practice, 17 C.F.R. Section 201.360 (1996). Pursuant to that
rule, a petition for review of this initial decision may be filed
within twenty-one days after service of the decision. It shall
become the final decision of the Commission as to each party who
has not filed a petition for review pursuant to Rule 360(d)(1)
within twenty-one days after service of the initial decision upon
him, unless the Commission, pursuant to Rule 360(b)(1),
determines on its own initiative to review this initial decision
as to any party. If a party timely files a petition for review,
or the Commission acts to review as to a party, the initial
decision shall not become final as to that party.
______________________________
Lillian A. McEwen
Administrative Law Judge" |
