From the SEC Digest:
RICHARD MICHAEL CONSENTS TO THE ENTRY OF AN ADMINISTRATIVE CEASE-AND-DESIST ORDER FOR SELLING UNREGISTERED SECURITIES AND ACTING AS A BROKER WITHOUT REGISTRATION
On December 10, the Commission announced that it instituted and settled administrative and cease-and-desist proceedings, pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b)(6), 19(h) and 21C of the Securities Exchange Act of 1934, against Richard J. Michael for willfully violating, and committing or causing violations of, Section 5 of the Securities Act and Section 15(a)(1) of the Exchange Act.
The Commission found that Michael, as a consultant to Stratcomm Media Ltd. (Stratcomm) and Corporate Relations Group, Inc. (CRG) its wholly-owned subsidiary, sold more than 310,000 shares of Stratcomm common stock to the public in violation of the registration provision of the federal securities laws, earning commissions from Stratcomm and CRG of over $36,000. Stratcomm had not filed a registration statement concerning these common stock sales, nor was there a registration statement in effect or an exemption from registration available to Stratcomm. Moreover, Michael was not registered as a broker.
Without admitting or denying the Commission's findings, Michael consented to the entry of an order which requires him to cease and desist from committing or causing any violation, and any future violations, of Section 5 of the Securities Act and Section 15(a)(1) of the Exchange Act, and pay disgorgement and prejudgment interest in the total amount of $52,594.48, and a civil money penalty in the amount of $5,000. (Rel. 33-7783; Rel. 34-42220; File No. 3-10114)
MICHAEL PITTS CONSENTS TO THE ENTRY OF AN ADMINISTRATIVE CEASE-AND-DESIST ORDER FOR ACCEPTING BRIBES FROM PUBLIC RELATIONS FIRM CORPORATE RELATIONS GROUP, INC.
On December 10, the Commission announced that it instituted and settled administrative and cease-and-desist proceedings, pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b)(6), 19(h) and 21C of the Securities Exchange Act of 1934, against Michael L. Pitts for willfully violating and committing or causing violations of Sections 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
The Commission found that Pitts, who was a registered representative during the relevant time, recommended and/or sold shares of common stock of The Tracker Corporation of America (Tracker) to his customers and failed to disclose the material information that he had been or would be compensated by Corporate Relations Group, Inc., a public relations firm located in Winter Park, Florida, which was promoting Tracker at the time, for inducing his clients to buy this stock.
Without admitting or denying the Commission's findings, Pitts consented to the entry of an order which requires him to cease and desist from committing or causing any violation and any future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and to pay disgorgement and prejudgment interest in the total amount of $20,425.03, and a civil money penalty in the amount of $13,805.50. The order also bars him from association with any broker or dealer with the right to reapply for association after five years to the appropriate self-regulatory organization or, if there is none, to the Commission. (Rel. 33-7784; Rel. 34-42221; File No. 3-10115)
sec.gov |
