|SEC bans Las Vegas lawyer Tanner, a dubious P.I. client|
2002-11-08 11:25 PT - Street Wire.
by Brent Mudry
The United States Securities and Exchange Commission has banned Las Vegas lawyer Max C. Tanner, a client of controversial Vancouver brokerage Pacific International Securities convicted for securities fraud. In an administrative proceeding order signed Tuesday by SEC secretary Jonathan Katz, Mr. Tanner has been temporarily suspended from appearing or practicing before the commission as a lawyer. In an earlier related penalty, the SEC gave Mr. Tanner a lifetime ban from serving as an officer or director of a public company.
Mr. Tanner was banned for his key role in the Maid Aide case, a 1998-1999 penny stock rig job which featured two boiler rooms, unregistered shares, offshore accounts and greased brokers. The Maid Aide stock manipulation also featured Pacific International Securities, a Howe Street brokerage currently under prosecution by the B.C. Securities Commission, as a stock and money laundering conduit for numerous offshore dealings.
Mr. Tanner's latest SEC punishment comes just ahead of his criminal sentencing Friday in United States District Court for the District of Nevada, in Las Vegas. A previous scheduled sentencing was abruptly cancelled, with SEC staff lawyers flying in from Washington, when it was bumped by another matter in front of the Nevada judge.
In the related criminal case, Mr. Tanner was convicted Nov. 19, 2001, of 37 counts of securities fraud, including mail, wire and tax fraud, and money laundering. Mr. Tanner's money laundering conviction relates to his offshore Pacific International dealings.
The Maid Aide case has been probed by the SEC, the BCSC, the Federal Bureau of Investigation, the U.S. Attorney's Office for the Southern District of New York and NASD Regulation Inc., the regulatory arm of the National Association of Securities Dealers.
Pacific International, Mr. Tanner's Canadian brokerage conduit, is currently in the early stages of a landmark hearing by the BCSC, which claims it attracted and serviced far more than its Howe Street share of crooks, securities violators and other riff-raff. Mr. Tanner did not make the BCSC's initial Pacific International dubious client list, outlined in its notice of hearing. The list features Sholam Weiss, recently extradited to Orlando, Fla., after fleeing an 845-year fraud sentence, and numerous notable figures with lesser claims to fame.