United States Securities and Exchange Commission
Securities Exchange Act of 1934
Release No. 44869 / September 28, 2001
File No. 3-10596
Proceedings Instituted against Rajiv Vohra of Deerfeild Beach, Florida
On September 28, 2001, the Commission instituted administrative proceedings against Rajiv Vohra. In the Order Instituting Public Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, the Division of Enforcement ("Division") alleges that Vohra participated in an offering of penny stock. The Division further alleges that on April 5, 2001, a final judgment of permanent injunction was entered, by consent, against Vohra, permanently enjoining him from violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. SEC v. Rajiv Vohra, Sean Healey, Lantern Investments, Ltd., Lipton Holdings, Ltd., and Beaufort Holdings, Ltd., Civil Action No. 1:00-CV-7286 (S.D. Fla.).
The Commission's complaint in the district court action alleged that the defendants used "wash sales" to create the appearance of active trading in New Directions stock. Vohra and others then arranged to have a false and misleading research report published on a stock-picker web site, on their own web site, and through unsolicited mass e-mails. The research report falsely claimed that New Directions had significantly expanded, that the author of the report was an independent analyst, and that the purported analyst had issued a buy recommendation. Vohra and others attempted to conceal their scheme by conducting much of their activity through Canadian brokerage accounts and Bahamian companies. The defendants profited approximately $500,000 from their scheme.
A hearing will be scheduled before an administrative law judge to determine whether the allegations against Vohra are true and, if so, what sanctions, if any, are appropriate and in the public interest.
See Litigation Release Nos. 16973 and 1841.