2005-01-28 sec-litreleases litigation_release 64 KB 1,859 chars

SEC v. David M. Wolfson, No. LR-19056, District of Utah (Jan. 28, 2005) — Press Release

raw: David M. Wolfson, et al.

David M. Wolfson, et al., No. LR-19056 (Jan. 28, 2005)

Caption: SEC v. David M. Wolfson

summary

David M. Wolfson was permanently barred from the securities industry and ordered to pay over $3 million in disgorgement, interest, and penalties for his role in a boiler room scheme that defrauded investors in the UK, Australia, and New Zealand through illegal sales of microcap stocks, without admitting or denying the SEC’s allegations.

paragraph

David M. Wolfson was found to have violated Sections 10(b) and 17(a) of the federal securities laws by participating in a fraudulent boiler room scheme that sold microcap securities to investors in the UK, Australia, and New Zealand via a Laos-based operation. He consented to a final judgment imposing $2,759,983 in disgorgement, $172,122 in prejudgment interest, and a $120,000 civil penalty, along with a permanent ban from participating in penny stock offerings or serving as an officer or director of public companies. The judgment followed his contempt citation in February 2004 for violating a court-ordered asset freeze issued in October 2003.

narrative

David M. Wolfson was named in a U.S. Securities and Exchange Commission (SEC) lawsuit involving a large-scale boiler room scheme that sold microcap securities to hundreds of investors in the UK, Australia, and New Zealand through an operation based in Vientiane, Laos. The SEC alleged Wolfson engaged in antifraud violations under Sections 10(b) and 17(a) of the federal securities laws by manipulating and promoting penny stocks to unsuspecting foreign investors. On December 22, 2004, a federal judge entered a final judgment against Wolfson, who consented to the order without admitting or denying the allegations. The judgment permanently enjoined him from future securities law violations, barred him from participating in any penny stock offering, and prohibited him from serving as an officer or director of any SEC-registered or reporting company. Wolfson was ordered to pay $2,759,983 in disgorgement, $172,122 in prejudgment interest, and a $120,000 civil penalty. Additionally, he was held in contempt of court on February 27, 2004, for violating a court order that froze his assets as part of the SEC’s initial enforcement action filed in October 2003.

Enriched metadata

Scheme: boiler-room (100%)
Court: District of Utah
Outcome: settled · 2004-02-27
Disgorgement: $2,759,983
Civil penalty: $120,000
Entity: David M. Wolfson

Classified boiler-room(confidence 100%). EDGAR detection: forms Form D· recall 50% / precision 4%. detection rule →

Extracted insights

Dollar amounts 3

$2.76M $2,759,983 $1M–$10M
$172K $172,121 $100K–$1M
$120K $120,000 $100K–$1M

Entities 4

person Dale a. Kimball
person David M. Wolfson
organization Securities and Exchange Commission
organization United States District Court For The District Of Utah

Triples 3

the Honorable Dale A. Kimball, United States District Judge for the District of Utah entered a Final Judgment against David M. Wolfson
Wolfson was permanently enjoined from future violations of the antifraud provisions of the federal securities laws
Wolfson ordered to pay disgorgement of $2,759,983.00 plus prejudgment interest of $172,121.82 together with a civil penalty of $120,000.00

View original SEC litigation releasesec.gov

Extracted body text (1,859c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19056 / January 28, 2005 S.E.C. v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.) On December 22, 2004, the Honorable Dale A. Kimball, United States District Judge for the District of Utah, entered a Final Judgment against David M. Wolfson ("Wolfson"). Wolfson was permanently enjoined from future violations of the antifraud provisions of the federal securities laws and ordered to pay disgorgement of $2,759,983.00 plus prejudgment interest of $172,121.82 together with a civil penalty of $120,000.00 and barred from participating in any offering of penny stock and from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 ("Exchange Act") or that is required to file reports pursuant to Section 15(d) of the Exchange Act. In October 2003, the Commission filed a Complaint, in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in a scheme to sell securities in five United States-based microcap issuers to hundreds of investors located primarily in the United Kingdom, Australia and New Zealand through a boiler room located in Vientiane, Laos. In that action, the Commission obtained an order which, among other things, froze the assets of a number of defendants, including Wolfson. On February 27, 2004, the Court entered an order of contempt against Wolfson for violating the order freezing Wolfson's assets. The Final Judgment, to which the Wolfson consented without admitting or denying the allegations of the Commission's complaint, specifically enjoins Wolfson from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Section 17(a) of the Securities Act of 1933.

OCR text (1,859c · plain-text · 99% conf)