SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
SECURITIES EXCHANGE ACT OF 1934
ADMINISTRATIVE PROCEEDINGS INSTITUTED FOR FRAUD IN OFFER AND SALE OF ORLANDO SUPER CARD, INC. STOCK
The Securities and Exchange Commission announced today that it has instituted administrative proceedings concerning alleged manipulation and other fraud in the offer and sale of the stock of Orlando Super Card, Inc. ("Orlando"), an OTC Bulletin Board company. In its Order Instituting Public Administrative and Cease-and-Desist Proceedings ("Order"), the Commission alleges that between May and August 1997, Jon F. Williams and John G. Wright manipulated the stock of Orlando, a company in the business of selling phone cards and vacation packages. Williams and Wright, who then resided in the San Francisco, California area, obtained control of 80% of the freely trading shares of Orlando and manipulated the price by buying and selling the stock between brokerage accounts they controlled at various Canadian brokerage firms. During this period, the price of Orlando stock increased from $1.25 to as high as $4.09, giving Orlando, with less than $20,000 in assets, a market value of more than $9.7 million. After Williams and Wright stopped their manipulation, the price of Orlando stock plummeted. The Order also alleges that William Nordvik, of Minneapolis, Minnesota, supplied false information that enabled Orlando to trade on the OTC Bulletin Board.
The Order alleges that Williams, Wright and Nordvik each willfully violated the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. A hearing will be held before an administrative law judge to determine whether the allegations in the Order are true and what, if any, sanctions are appropriate, and whether disgorgement and/or penalties should be ordered.
The Commission acknowledges the assistance of the British Columbia Securities Commission in the investigation of this matter.