U.S. Securities and Exchange Commission
Securities Act of 1933
Release No. 8307 / October 23, 2003
File No. 3-11309
Cease-and-Desist Proceedings Instituted Against OTC Live, Inc. and Mark A. Suleymanov
On October 23, 2003, the Securities and Exchange Commission ("Commission") instituted cease-and-desist proceedings against alleged Internet stock promoter OTC Live, Inc. ("OTC Live") and its president, Mark A. Suleymanov (who also uses the surname "Suleman") ("Suleymanov").
The Division of Enforcement ("Division") alleges that OTC Live, based in Rego Park, New York, was hired to promote a publicly traded company, First Capital International, Inc. ("First Capital"), on the Internet in exchange for purportedly unrestricted shares of First Capital stock. First Capital's president, Alexander Genin ("Genin"), negotiated the deal with OTC Live's president, Suleymanov. To pay for OTC Live's campaign, Genin transferred to OTC Live 20,000 First Capital shares from a brokerage account over which he held power of attorney.
The Division alleges that OTC Live began its promotional campaign by posting a research report recommending that investors purchase First Capital stock. In the four days that followed, First Capital's stock price rose 92 percent, from $0.13 to $0.25 per shares. OTC Live later sold the stock it had received from First Capital's president for $3,285.
The Division alleges that OTC Live obtained the First Capital shares with a view to distributing them to the public from a person directly or indirectly controlling or controlled by First Capital, or under direct or indirect common control with First Capital. Therefore, the stock was restricted and OTC Live was prevented from selling the stock to the public for one year. The transactions constituted an illegal distribution of securities and OTC Live and Suleymanov, who participated in the distribution, violated Sections 5(a) and 5(c) of the Securities Act of 1933.
A hearing will be scheduled before an administrative law judge to determine whether the allegations in the Order are true and, if so, whether OTC Live and Suleymanov should be ordered to cease and desist from committing or causing violations of and any future violations of Sections 5(a) and 5(c) of the Securities Act, and whether they should be ordered to disgorge the proceeds of their conduct.
The Commission directed that the administrative law judge shall issue an initial decision in this matter within 300 days from the date of service of the Order Instituting Proceedings.