In re DOUGLAS RASBERRY AND
Exhibit of Andrew K. Proctor, et al.
summary
Douglas Rasberry and Andrew K. Proctor pled guilty to conspiracy to commit wire fraud, mail fraud, and securities fraud by orchestrating schemes to inflate penny stock prices (UMDA and CT Cosmetics) through fake kickbacks to an FBI agent and fictitious fund officials, resulting in Rasberry’s 27-month prison sentence and Proctor’s probation with home detention, after which the SEC barred both from participating in any penny stock offerings.
paragraph
Douglas Rasberry and Andrew K. Proctor were charged with conspiring to defraud public investors by artificially inflating the prices of penny stocks—UMDA and CT Cosmetics, respectively—through undisclosed kickbacks to a fictitious foreign fund and corrupt intermediaries, including an undercover FBI agent. Rasberry pled guilty in June 2004 to one count of conspiracy and received a 27-month prison term and $100 in criminal penalties, while Proctor pled guilty in January 2005 to conspiracy to commit wire and securities fraud and was sentenced to three years probation, six months home detention, and a $20,000 fine. The SEC permanently barred both from participating in any penny stock offerings as promoters, consultants, or agents, citing their criminal convictions and fraudulent conduct in violation of the Securities Exchange Act of 1934.
narrative
Douglas Rasberry and Andrew K. Proctor were found to have conspired to commit wire fraud, mail fraud, and securities fraud by orchestrating schemes to artificially inflate the market prices of penny stocks—UMDA and CT Cosmetics—through fraudulent payments of undisclosed kickbacks to a fictitious foreign mutual fund and corrupt intermediaries, including an undercover FBI agent. Rasberry, who controlled UMDA stock via offshore corporate nominees, pled guilty in June 2004 to conspiracy in federal court in Florida and was sentenced to 27 months in prison and a $100 fine. Proctor, who served as chairman and CFO of CT Cosmetics, pled guilty in January 2005 to conspiracy to commit wire and securities fraud in California and received three years of probation, six months of home detention, and a $20,000 fine. Both men participated in fraudulent offerings of penny stocks, manipulating supply and demand to enrich themselves at the expense of public shareholders. The SEC instituted administrative proceedings against them, accepting their offers of settlement without admission of guilt beyond jurisdictional and factual findings. As a remedial sanction, the SEC permanently barred both Rasberry and Proctor from participating in any penny stock offerings in any capacity, including as promoters, consultants, or agents, to protect investors from future fraud.
Classified pump-and-dump(confidence 100%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Statutes
SECTION 15(b) OF THE SECURITIES EXCHANGE ACT
Parties
Securities and Exchange CommissionPROCTORET ALCRIMINAL
Keywords
rasberryproctorstocksecurities exchangecommissionsecuritiesexchangedouglas rasberrypenny stockwhichfundproceedingsunjustly enrichenrich defraudingcriminal
Extracted insights
Dollar amounts 2
- $20K $20,000 $10K–$100K
- $100 $100 <$10K
Entities 6
- person douglas rasberry
- scheme_term one count of conspiracy to commit wire fraud, mail fraud, and securities fraud
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- company Uncommon Media Group, Inc.
- company unjustly enrich themselves by defrauding a fictitious foreign mutual fund
Triples 21
- Douglas Rasberry pled guilty one count of conspiracy to commit wire fraud, mail fraud, and securities fraud
- Douglas Rasberry was sentenced to twenty-seven months in prison and two years of supervised release
- Douglas Rasberry assessed $100 in criminal monetary penalties
- Douglas Rasberry owned and controlled a significant amount of UMDA stock through offshore corporate nominees
- Douglas Rasberry participated in the offering of UMDA, a penny stock
- Uncommon Media Group, Inc. was a Florida corporation with principal place of business in New York, New York
- Uncommon Media Group, Inc. had common stock publicly traded on the over-the-counter market in the United States
- Rasberry and Proctor submitted Offers of Settlement
- Securities and Exchange Commission instituted administrative proceedings against Douglas Rasberry and Andrew K. Proctor
- Securities and Exchange Commission made findings based on the Order and Respondents' Offers
- Rasberry admitted findings in Section III.A.4
- Proctor admitted findings in Section III.B.4
- Rasberry and co-defendants conspired to unjustly enrich themselves by defrauding a fictitious foreign mutual fund
- Rasberry and co-defendants paid undisclosed kickbacks to undercover FBI agent, cooperating witnesses, corrupt Fund manager, and due diligence officers
- Rasberry and co-defendants caused the Fund to purchase large amounts of overpriced UMDA stock
- Rasberry and co-defendants artificially affected the supply of UMDA stock
- Douglas Rasberry pled guilty to one count of conspiracy to commit wire fraud, mail fraud, and securities fraud
- Douglas Rasberry was sentenced to a prison term of twenty-seven months followed by two years of supervised release
- Douglas Rasberry was assessed $100 in criminal monetary penalties
- Douglas Rasberry and his co-defendants conspired to unjustly enrich themselves by defrauding a fictitious foreign mutual fund through paying undisclosed kickbacks
- Douglas Rasberry and his co-defendants conspired to unjustly enrich themselves by defrauding the public shareholders of UMDA by artificially affecting the supply and demand of UMDA stock
Text layers
Extracted body text (7,703c)
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 53158 / January 20, 2006
ADMINISTRATIVE PROCEEDING
File No. 3-12152
In the Matter of
DOUGLAS RASBERRY AND
ANDREW K. PROCTOR,
Respondents.
ORDER INSTITUTING
ADMINISTRATIVE PROCEEDINGS
PURSUANT TO SECTION 15(b) OF THE
SECURITIES EXCHANGE ACT OF 1934,
MAKING FINDINGS, AND IMPOSING
REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the
public interest that public administrative proceedings be, and hereby are, instituted pursuant to
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Douglas Rasberry
(“Rasberry”) and Andrew K. Proctor (“Proctor”) (collectively “Respondents”).
II.
In anticipation of the institution of these proceedings, Rasberry and Proctor have each
submitted an Offer of Settlement (the “Offers”) 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 to which the Commission is a party, and without admitting or denying the
findings herein, except as to the Commission’s jurisdiction over them and the subject matter of
these proceedings, and the findings contained in Section III.A.4 which are admitted by Rasberry,
and in Section III.B.4. which are admitted by Proctor, Respondents consent to the entry of this
Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange
Act of 1934, Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below.
2
III.
On the basis of this Order and Respondents’ Offers, the Commission finds that:
A.
Rasberry
1. Uncommon Media Group, Inc. (“UMDA”) was a Florida corporation with
its principal place of business in New York, New York. The common stock of UMDA was publicly
traded in the United States on the over-the-counter market.
2. Rasberry, 47 years old, is a resident of Canada. Rasberry owned and
controlled a significant amount of UMDA stock through offshore corporate nominees.
3. Rasberry participated in the offering of UMDA, which is a penny stock.
4. On June 22, 2004, Rasberry pled guilty to one count of conspiracy to commit
wire fraud, mail fraud, and securities fraud in violation of Title 18 of the United States Code,
Section 371 before the United States District Court for the Southern District of Florida, in
United
States v. Douglas Rasberry Case Number 02-20637 (Judge Moore). Rasberry was sentenced to a
prison term of twenty-seven months followed by two years of supervised release. Rasberry was
also assessed $100 in criminal monetary penalties.
5. The count of the criminal indictment to which Rasberry pled guilty alleged,
inter alia, that Rasberry and his co-defendants conspired to unjustly enrich themselves by
defrauding a fictitious foreign mutual fund (“the Fund”) through paying undisclosed kickbacks to an
undercover Federal Bureau of Investigation agent, cooperating witnesses, a purported corrupt Fund
manager and two purported due diligence officers, in exchange for their causing the Fund to
purchase a large amount of overpriced UMDA stock from the defendants. The count of the criminal
indictment alleged that it was also the purpose and object of the conspiracy for Rasberry and his co-
defendants to unjustly enrich themselves by defrauding the public shareholders of UMDA by
artificially affecting the supply and demand for UMDA stock in order to inflate the market price of
such stock through illegal means.
B.
Proctor
1. CT Cosmetics, Inc. (“CT Cosmetics”) was a Delaware corporation with its
principal place of business located in Bermuda. A federal indictment unsealed on August 15, 2002
before the United States Court for the Southern District of Florida, in
United States v. Proctor, et al.,
Criminal Indictment No. 02-80087 (the “indictment”) alleged that CT Cosmetics was in the process
of registering its stock to be publicly traded in the United States.
2. Proctor, 48 years old, is a resident of California. Proctor was the chairman, a
director, and the chief financial officer of CT Cosmetics.
3. Proctor participated in the offering of CT Cosmetics, which is a penny stock.
3
4. On May 18, 2004, by a Consent to Transfer of Case for Plea and Sentence
under Rule 20 of the Federal Rules of Criminal Procedure, Proctor notified the Court of his wish to
plead guilty to the offenses charged in the indictment and consented to a transfer of his case for plea
and sentencing to the United States District Court for the Central District of California. On January
11, 2005, Proctor pled guilty to one count of conspiracy to commit wire fraud and securities fraud,
in violation of Title 18 of the United States Code, Sections 1343 and 1346 and Title 15 of the
United States Code, Sections 78j(b) and 78f(f) before the United States District Court for the
Central District of California (Western Div.) in
Unites States v. Proctor, Criminal Indictment No.
04-615. In addition, the criminal court entered a judgment against Proctor that sentenced him to
three years of probation with six months home detention and other special conditions. Proctor was
also ordered to pay a $100 special assessment to the court and a $20,000 fine.
5. The count of the criminal indictment (the “count”) to which Proctor pled
guilty alleged,
inter alia, that Proctor and his co-defendants conspired to unjustly enrich themselves
by defrauding the Fund by paying payoffs and kickbacks to an undercover agent of the Federal
Bureau of Investigation who posed as a corrupt securities trader for the Fund in exchange for the
Fund to purchase CT Cosmetics. The count alleged that it was also the purpose and object of the
conspiracy for Proctor and his co-defendants to unjustly enrich themselves by defrauding the Fund
and the public by fraudulently causing the price of CT Cosmetics stock to be artificially increased
through payoffs and kickbacks to brokers that were undisclosed to the Fund and the public so that
the defendants’ CT Cosmetics stock could be sold at a significant value when, in actuality, it was
virtually worthless.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to
impose the sanctions agreed to in each of the Respondents’ Offers.
Accordingly, it is hereby ORDERED:
Respondents Rasberry and Proctor be, and hereby are, barred from participating in any
offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person
who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in
any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.
By the Commission.
Nancy M. Morris
Secretary
OCR text (7,087c · tika · 95% conf)
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 53158 / January 20, 2006
ADMINISTRATIVE PROCEEDING
File No. 3-12152
In the Matter of
DOUGLAS RASBERRY AND
ANDREW K. PROCTOR,
Respondents.
ORDER INSTITUTING
ADMINISTRATIVE PROCEEDINGS
PURSUANT TO SECTION 15(b) OF THE
SECURITIES EXCHANGE ACT OF 1934,
MAKING FINDINGS, AND IMPOSING
REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the
public interest that public administrative proceedings be, and hereby are, instituted pursuant to
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Douglas Rasberry
(“Rasberry”) and Andrew K. Proctor (“Proctor”) (collectively “Respondents”).
II.
In anticipation of the institution of these proceedings, Rasberry and Proctor have each
submitted an Offer of Settlement (the “Offers”) 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 to which the Commission is a party, and without admitting or denying the
findings herein, except as to the Commission’s jurisdiction over them and the subject matter of
these proceedings, and the findings contained in Section III.A.4 which are admitted by Rasberry,
and in Section III.B.4. which are admitted by Proctor, Respondents consent to the entry of this
Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange
Act of 1934, Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below.
2
III.
On the basis of this Order and Respondents’ Offers, the Commission finds that:
A. Rasberry
1. Uncommon Media Group, Inc. (“UMDA”) was a Florida corporation with
its principal place of business in New York, New York. The common stock of UMDA was publicly
traded in the United States on the over-the-counter market.
2. Rasberry, 47 years old, is a resident of Canada. Rasberry owned and
controlled a significant amount of UMDA stock through offshore corporate nominees.
3. Rasberry participated in the offering of UMDA, which is a penny stock.
4. On June 22, 2004, Rasberry pled guilty to one count of conspiracy to commit
wire fraud, mail fraud, and securities fraud in violation of Title 18 of the United States Code,
Section 371 before the United States District Court for the Southern District of Florida, in United
States v. Douglas Rasberry Case Number 02-20637 (Judge Moore). Rasberry was sentenced to a
prison term of twenty-seven months followed by two years of supervised release. Rasberry was
also assessed $100 in criminal monetary penalties.
5. The count of the criminal indictment to which Rasberry pled guilty alleged,
inter alia, that Rasberry and his co-defendants conspired to unjustly enrich themselves by
defrauding a fictitious foreign mutual fund (“the Fund”) through paying undisclosed kickbacks to an
undercover Federal Bureau of Investigation agent, cooperating witnesses, a purported corrupt Fund
manager and two purported due diligence officers, in exchange for their causing the Fund to
purchase a large amount of overpriced UMDA stock from the defendants. The count of the criminal
indictment alleged that it was also the purpose and object of the conspiracy for Rasberry and his co-
defendants to unjustly enrich themselves by defrauding the public shareholders of UMDA by
artificially affecting the supply and demand for UMDA stock in order to inflate the market price of
such stock through illegal means.
B. Proctor
1. CT Cosmetics, Inc. (“CT Cosmetics”) was a Delaware corporation with its
principal place of business located in Bermuda. A federal indictment unsealed on August 15, 2002
before the United States Court for the Southern District of Florida, in United States v. Proctor, et al.,
Criminal Indictment No. 02-80087 (the “indictment”) alleged that CT Cosmetics was in the process
of registering its stock to be publicly traded in the United States.
2. Proctor, 48 years old, is a resident of California. Proctor was the chairman, a
director, and the chief financial officer of CT Cosmetics.
3. Proctor participated in the offering of CT Cosmetics, which is a penny stock.
3
4. On May 18, 2004, by a Consent to Transfer of Case for Plea and Sentence
under Rule 20 of the Federal Rules of Criminal Procedure, Proctor notified the Court of his wish to
plead guilty to the offenses charged in the indictment and consented to a transfer of his case for plea
and sentencing to the United States District Court for the Central District of California. On January
11, 2005, Proctor pled guilty to one count of conspiracy to commit wire fraud and securities fraud,
in violation of Title 18 of the United States Code, Sections 1343 and 1346 and Title 15 of the
United States Code, Sections 78j(b) and 78f(f) before the United States District Court for the
Central District of California (Western Div.) in Unites States v. Proctor, Criminal Indictment No.
04-615. In addition, the criminal court entered a judgment against Proctor that sentenced him to
three years of probation with six months home detention and other special conditions. Proctor was
also ordered to pay a $100 special assessment to the court and a $20,000 fine.
5. The count of the criminal indictment (the “count”) to which Proctor pled
guilty alleged, inter alia, that Proctor and his co-defendants conspired to unjustly enrich themselves
by defrauding the Fund by paying payoffs and kickbacks to an undercover agent of the Federal
Bureau of Investigation who posed as a corrupt securities trader for the Fund in exchange for the
Fund to purchase CT Cosmetics. The count alleged that it was also the purpose and object of the
conspiracy for Proctor and his co-defendants to unjustly enrich themselves by defrauding the Fund
and the public by fraudulently causing the price of CT Cosmetics stock to be artificially increased
through payoffs and kickbacks to brokers that were undisclosed to the Fund and the public so that
the defendants’ CT Cosmetics stock could be sold at a significant value when, in actuality, it was
virtually worthless.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to
impose the sanctions agreed to in each of the Respondents’ Offers.
Accordingly, it is hereby ORDERED:
Respondents Rasberry and Proctor be, and hereby are, barred from participating in any
offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person
who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in
any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.
By the Commission.
Nancy M. Morris
Secretary