UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 46200 / July 15, 2002
File No. 3-10830
PUBLIC PROCEEDINGS INSTITUTED AGAINST JAMES A. NIES
On July 15, 2002, he Commission issued an Order Instituting Public Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Order") against James A. Nies ("Nies") of San Francisco, California based on the entry of an Order of Permanent Injunction and Other Relief enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. SEC v. James A. Nies, Jeffrey Dene Leader and H. Dalton Davlin, Case No. 3:00-CV-465-MU (W.D.N.C.).
The SEC alleged in its complaint that Nies fraudulently acquired $300,000 when he and others defrauded 17 financial institutions in 11 states, and their account holders, through a scheme in which Nies and his codefendants orchestrated the purchase of stock issued by the banks as part of the banks' conversion from mutually owned banks to publicly traded companies.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Nies an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and in the public interest.