The United States Securities and Exchange Commission ("Commission") today instituted public administrative proceedings against Jeffrey M. Goldberg ("Goldberg") of Weston, Florida, pursuant to Section 15(b) of the Securities Exchange Act of 1934 to determine whether remedial sanctions should be imposed against Goldberg based on the entry of a judgment of permanent injunction against him in SEC v. Goldberg et al. (Civil Action No. 01-6952-CIV-Dimitrouleas)(S.D. Fla), by his consent, enjoining him from further violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Exchange Act of 1934 and Rule 10b-5 thereunder.
The Division of Enforcement alleges that from 1996 through mid-1999, Goldberg was associated with Medical Research Industries ("MRI"), an unregistered broker-dealer. In its complaint in the civil injunctive action, the Commission alleged that while at MRI, Goldberg was responsible for overseeing MRI's telemarketing operation and received commissions in connection with the sale of MRI stock. MRI was a Ft. Lauderdale based company which allegedly manufactured and marketed homeopathic products, in patch form, for a variety of health concerns, including weight loss and sleep disorders. Through a series of fraudulent stock offerings, MRI raised approximately $52 million from more than 2,500 investors nationwide, primarily physicians.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Goldberg an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and in the public interest.