SEC v. Christopher Wolf, No. LR-17093, Eastern District of New York (Aug. 8, 2001) — Press Release
raw: Mark Simeon Jakob
Mark Simeon Jakob, No. LR-17093 (E.D.N.Y. Aug. 8, 2001)
Christopher Wolf orchestrated a securities fraud scheme by deceitfully selling Auxer Industries stock without authorization, concealing his compensation and use of his own shares, leading to a 10-year-8-month prison sentence and $20 million in criminal restitution that satisfied the SEC’s disgorgement claim with no civil penalty imposed due to inability to pay.
Christopher Wolf defrauded customers by selling Auxer Industries stock through Vision Investment Group’s unregistered New York branch between July and December 1995, making false claims about the company’s prospects and trading without customer consent. He and his team concealed that they received cash compensation for the sales and used their own Auxer shares to fulfill customer orders. Wolf was criminally convicted of securities fraud, conspiracy, and money laundering, sentenced to 10 years and 8 months in prison, and ordered to pay $20 million in restitution, which the SEC accepted as full satisfaction of its disgorgement claim, with no civil penalty due to his inability to pay.
Christopher Wolf orchestrated a fraudulent scheme involving the unauthorized sale of Auxer Industries, Inc. stock through Vision Investment Group’s New York City branch from July to December 1995, despite never being registered with the firm. He and subordinate salespeople made material misrepresentations about Auxer’s financial prospects and future stock price, while secretly purchasing Auxer shares for customer accounts without authorization. Wolf and his team concealed that they received cash compensation for these sales and used shares held in Vision accounts—belonging to Wolf himself—to fill customer orders, thereby misleading investors. In the related criminal case, Wolf was convicted on one count of securities fraud, five counts of conspiracy to commit securities fraud, and two counts of conspiracy to commit money laundering, resulting in a 10-year and 8-month prison sentence and a $20 million restitution order. The SEC’s civil complaint, filed in June 1999, led to a default judgment enjoining Wolf from future violations of federal securities laws, and the court later accepted the criminal restitution as full satisfaction of the SEC’s disgorgement claim. No additional civil penalty was imposed because Wolf demonstrated an inability to pay further financial sanctions. The case underscores the severity of unregistered brokerage activity and the use of deceptive practices in microcap stock fraud.
Extracted insights
- $20.00M $20 million $10M–$100M
- person cash compensation
- person christopher wolf
- scheme_term one count of securities fraud
- agency Securities and Exchange Commission
- court us district court
- SEC Settles Charges Against Christopher Wolf
- US District Court Entered Final Judgment of Disgorgement
- Christopher Wolf Was Convicted On One Count of Securities Fraud
- Christopher Wolf Was Sentenced To 10 Years and 8 Months Incarceration
- Christopher Wolf Must Pay $20 Million In Restitution
- The Court Entered Partial Judgment by Default
- The Complaint Alleged Wolf Orchestrated Fraudulent Sale of Auxer Industries, Inc. Stock
- Wolf Defrauded Customers of Vision
- Wolf Failed To Disclose Cash Compensation
Litigation Release No. 17093 \ August 8, 2001 SEC SETTLES CHARGES AGAINST CHRISTOPHER WOLF FOR FRAUD INVOLVING SALES OF AUXER STOCK SECURITIES AND EXCHANGE COMMISSION V. CHRISTOPHER WOLF, 99-CIV-3377 (E.D.N.Y) (NG) The Securities and Exchange Commission announced that on July 17, 2001 the United States District Court for the Eastern District of New York entered a Final Judgment of Disgorgement as to Christopher Wolf, which provided that the Commission's claim for disgorgement against Wolf is satisfied by the $20 million in restitution ordered in a related criminal proceeding, United States v. Christopher Wolf, 99 CR 139 (E.D.N.Y.) (NG). The Final Judgment of Disgorgement did not impose a civil penalty, based upon Wolf's demonstrated inability to pay. Previously, on March 28, 1999, the Court entered a Partial Judgment by Default against Wolf which enjoined him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In the related criminal proceeding, Wolf was convicted on one count of securities fraud, five counts of conspiracy to commit securities fraud, and two counts of conspiracy to commit money laundering, and sentenced to serve a term of incarceration of 10 years and 8 months and to pay $20 million in restitution. The Commission's complaint, filed on June 16, 1999, alleged that Wolf orchestrated the fraudulent sale of stock in Auxer Industries, Inc., from a New York City branch office of Vision Investment Group, Inc., a now defunct, registered broker-dealer. The complaint alleged that from approximately July through December 1995, Wolf, who owned and operated the New York City branch office even though he was never registered with Vision in any capacity, and other salespeople under his direction, defrauded customers of Vision in connection with their purchase of stock in Auxer by making material misrepresentations to customers about Auxer and its future prospects and through baseless predictions about its stock price, and by purchasing Auxer stock for customer accounts without authorization. Wolf and others also failed to disclose that they received cash compensation for selling Auxer stock and that customer orders were being filled with Wolf's stock held in Vision accounts. See also: LR-16189 (June 16, 1999)
Litigation Release No. 17093 \ August 8, 2001 SEC SETTLES CHARGES AGAINST CHRISTOPHER WOLF FOR FRAUD INVOLVING SALES OF AUXER STOCK SECURITIES AND EXCHANGE COMMISSION V. CHRISTOPHER WOLF, 99-CIV-3377 (E.D.N.Y) (NG) The Securities and Exchange Commission announced that on July 17, 2001 the United States District Court for the Eastern District of New York entered a Final Judgment of Disgorgement as to Christopher Wolf, which provided that the Commission's claim for disgorgement against Wolf is satisfied by the $20 million in restitution ordered in a related criminal proceeding, United States v. Christopher Wolf, 99 CR 139 (E.D.N.Y.) (NG). The Final Judgment of Disgorgement did not impose a civil penalty, based upon Wolf's demonstrated inability to pay. Previously, on March 28, 1999, the Court entered a Partial Judgment by Default against Wolf which enjoined him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In the related criminal proceeding, Wolf was convicted on one count of securities fraud, five counts of conspiracy to commit securities fraud, and two counts of conspiracy to commit money laundering, and sentenced to serve a term of incarceration of 10 years and 8 months and to pay $20 million in restitution. The Commission's complaint, filed on June 16, 1999, alleged that Wolf orchestrated the fraudulent sale of stock in Auxer Industries, Inc., from a New York City branch office of Vision Investment Group, Inc., a now defunct, registered broker-dealer. The complaint alleged that from approximately July through December 1995, Wolf, who owned and operated the New York City branch office even though he was never registered with Vision in any capacity, and other salespeople under his direction, defrauded customers of Vision in connection with their purchase of stock in Auxer by making material misrepresentations to customers about Auxer and its future prospects and through baseless predictions about its stock price, and by purchasing Auxer stock for customer accounts without authorization. Wolf and others also failed to disclose that they received cash compensation for selling Auxer stock and that customer orders were being filled with Wolf's stock held in Vision accounts. See also: LR-16189 (June 16, 1999)