United States Securities and Exchange Commission
Securities Exchange Act of 1934
Release No. 47518 / March 18, 2003
File No. 3-11067
Public Administrative Proceedings Instituted against John Abresch, the Vice President of Sales of Discovery Capital Group, Inc.
The Securities and Exchange Commission ("Commission") announced that it has instituted public administrative proceedings against John Abresch ("Abresch"), of Coral Springs, Florida, pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act"). On March 14, 2002, the Commission filed an emergency action against Abresch and others seeking to enjoin the ongoing fraudulent offering of securities issued by Discovery Capital Group, Inc. (Discovery Capital), a registered broker-dealer. On October 24, 2002, by Abresch's consent, and without admitting or denying the allegations of the Commission's Complaint, the United States District Court for the Southern District of Florida entered a Judgment of Permanent Injunction and Other Relief, enjoining Respondent Abresch from any future violations of Section 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
The Commission's Complaint alleges that Abresch, while associated with Discovery Capital Group, Inc. ("Discovery Capital"), made material misrepresentations and omissions in connection with the sale of securities issued by Discovery Capital in violation of the antifraud provisions of the federal securities laws.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Abresch an opportunity to dispute these allegations, and to determine what, if any remedial sanctions should be imposed.