UNITED STATES OF AMERICA
|In the Matter of
FASTLANE FOOTWEAR, INC. and JOHN H. LEFERE,
|ORDER MAKING FINDINGS
AND IMPOSING A
In this proceeding ordered pursuant to Section 8A of the Securities Act of 1933 ("Securities Act"), Respondents Fastlane Footwear, Inc. ("Fastlane") and John H. Lefere ("Lefere") have submitted Offers of Settlement ("Offers") which the Commission has determined to accept.1Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except as to jurisdiction of the Commission over them and over the subject matter of this proceeding, Respondents Fastlane and Lefere by their Offers consent to the entry of the findings set forth below.
On the basis of this Order, the Order Instituting Cease-and-Desist Proceeding and the Offers of Settlement submitted by Fastlane and Lefere, the Commission finds that 2
1. Fastlane Footwear, Inc. ("Fastlane") is a Michigan corporation located in Jackson, Michigan that designs, manufactures, and markets licensed casual footwear. Fastlane has licensing agreements with several major corporations, universities, and motor sports sanctioning bodies. Fastlane is not a reporting company and its stock is not registered with the Commission. Fastlane's stock has been quoted on the NASD's Over-the-Counter Bulletin Board since June 26, 1996.
2. John H. Lefere ("Lefere") is 53 years old and resides in Jackson Michigan. Lefere is the founder and president of Fastlane.
B. RELATED PARTY
Lambert D. Vander Tuig ("Vander Tuig"), age 40, lives in Coto de Caza, California. Although not currently employed in the securities industry, Vander Tuig worked as a registered representative with various registered broker-dealers from 1988 through 1996, during which time he held Series 7, 63, and 65 licenses. Vander Tuig was employed as a registered representative with Everen Securities, Inc. ("Everen") from December 9, 1994 to July 2, 1996 and with Hagerty, Stewart & Associates, Inc. ("Hagerty") from July 2, 1996 to September 5, 1996.
1. In the fall of 1995, Fastlane was a private footwear company with assets of approximately $1,000,000 and annual revenues of approximately the same amount. In or about December 1995, Lefere met with Vander Tuig regarding future corporate financing for Fastlane. Vander Tuig agreed to help Lefere raise $3,000,000 through the offer and sale of common stock. To that end, Lefere delivered to Vander Tuig approximately 1.2 million shares of Fastlane common stock for distribution to investors. Most of the shares were registered in the names of five nominees of Vander Tuig.
2. From December 1995 through September 1996, Vander Tuig, through five nominees, sold approximately 419,000 shares of Fastlane stock to approximately 70 investors in several states, raising approximately $1,035,000 for the company. Vander Tuig sold some of these shares directly to his brokerage customers at Everen and Hagerty. The rest of the shares were sold to friends, acquaintances and business associates of Vander Tuig. The stock was priced between $1.10 and $3.25 per share.
3. As part of Fastlane's corporate financing strategy, Lefere and Vander Tuig also agreed to raise capital through the sale of Fastlane stock via the Bulletin Board. On June 26, 1996, Fastlane stock began trading publicly through the Bulletin Board. In July and August 1996, Vander Tuig sold, through the Bulletin Board, an additional 74,000 shares of Fastlane stock held in accounts of the five above referenced nominees. These sales raised approximately $287,442, which Vander Tuig subsequently wired to the company in four installments.
4. No registration statement was filed with the Commission before the sale of any of Fastlane's securities.
5. Sections 5(a) and 5(c) of the Securities Act prohibit the offer or sale of unregistered securities in interstate commerce unless an exemption from registration applies. As a result of the conduct identified in paragraphs II.C.1. through II.C.4., namely the offer and sale of unregistered Fastlane Securities, Fastlane violated, and Lefere caused the violation of, Sections 5(a) and 5(c) of the Securities Act.
In view of the foregoing, the Commission deems it appropriate to accept the Offers of Settlement submitted by Fastlane and Lefere and to issue the cease-and-desist order.
Accordingly, IT IS HEREBY ORDERED that:
1. Pursuant to Section 8A of the Securities Act, Fastlane cease and desist from committing or causing any violation and any future violation of Sections 5(a) and 5(c) of the Securities Act; and
2. Pursuant to Section 8A of the Securities Act, Lefere cease and desist from committing or causing any violation and any future violation of Sections 5(a) and 5(c) of the Securities Act.
For the Commission, by its Secretary, pursuant to delegated authority.
Jonathan G. Katz
|1||The Order Instituting Cease-and-Desist Proceeding Pursuant to Section 8A of the Securities Act of 1933 ("Order Instituting Cease-and-Desist Proceeding") in this matter was instituted on August 3, 1999. See Securities Act Release No. 33-7710.|
|2||The findings herein are made pursuant to Respondents' Offers of Settlement and are not binding on any other person or entity in this or any other proceeding.|
|Home | Previous Page||