UNITED STATES OF AMERICA
In the Matter of
ALVIS COLIN SMITH, JR.,
|ORDER INSTITUTING PUBLIC
PURSUANT TO SECTION 15(b) OF THE
SECURITIES EXCHANGE ACT OF 1934,
MAKING FINDINGS AND IMPOSING
PENNY STOCK BAR
The Securities and Exchange Commission ("Commission") deems it appropriate in the public interest and for the protection of investors that a public administrative proceeding be instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") with respect to Alvis Colin Smith, Jr. ("Smith").
In anticipation of these administrative proceedings, Smith has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept. Solely for purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings herein, except as to the jurisdiction of the Commission over him and the subject matter of these proceedings and over the matters set forth herein, and the facts contained in paragraphs III.B and .C below, which are admitted, Smith consents to the entry of this Order Instituting Public Administrative Proceeding Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Penny Stock Bar ("Order").
Accordingly, IT IS HEREBY ORDERED that a public administrative proceeding be, and herby is, instituted against Smith pursuant to Section 15(b)(6) of the Exchange Act.
On the basis of this Order and the Offer submitted by Smith, the Commission finds that:
A. Smith was an officer and director of and controlled Great White Marine and Recreation, Inc. ("Great White"), a Nevada corporation, the common stock of which was registered with the Commission pursuant to Section 12(g) of the Exchange Act until its registration was revoked by the Commission on June 16, 2000;
B. On June 19, 2001, in Securities and Exchange Commission v. Great White Marine & Recreation, Inc., et al., Case No. W-99-CA-230, the United States District Court for the Western District of Texas entered a final judgment permanently enjoining Smith from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder;
C. The Commission alleged in Securities and Exchange Commission v. Great White Marine & Recreation, Inc., et al., (a) that from at least October 1997 through July 28, 1999, Smith orchestrated a massive, fraudulent unregistered distribution of Great White common stock, (b) that at the time of the alleged misconduct, Great White common stock was a penny stock, as used in Section 15(b)(6) and as defined by Section 3(a)(51) of the Exchange Act and Rule 3a51-1 thereunder, (c) that Smith saturated the market with false and misleading information about Great White's financial condition and business prospects, which resulted in a substantial rise in the price of Great White common stock and (d) that Smith sold approximately 14 million shares of Great White stock into the artificially inflated market, from which he realized profits of approximately $3 million; and
D. Smith participated in the offering of the common stock of Great White, a "penny stock," as that term is used in Section 15(b)(6) and as defined by Section 3(a)(51) of the Exchange Act and Rule 3a51-1 thereunder.
In view of the foregoing, the Commission deems it appropriate in the public interest and for the protection of investors to impose the sanctions specified in Smith's Offer of Settlement.
Accordingly, IT IS HEREBY ORDERED that Smith be, and hereby is, barred from participating in any offering of penny stock.
By the Commission.
Jonathan G. Katz
|Home | Previous Page||