U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission

United States of America
before the
Securities and Exchange Commission
Washington, D.C. 20549

Securities Exchange Act of 1934
Release No. 48523 / September 23, 2003

Administrative Proceeding
File No. 3-11221


In the Matter of

CYRUS INDUSTRIES, INC.

Respondent.


:
:
:
:
:
:
:
:
ORDER MAKING FINDINGS AND REVOKING REGISTRATION BY DEFAULT

SUMMARY

This Order revokes the registration of the common stock of Cyrus Industries, Inc. (Cyrus). The revocation is based on Cyrus's repeated failure to file required periodic reports with the Securities and Exchange Commission (Commission).

I. BACKGROUND

The Commission initiated this proceeding on August 14, 2003, with an Order Instituting Proceedings (OIP), pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act). The OIP alleges that Cyrus's common stock was registered under Section 12(g) of the Exchange Act in 2000, and that Cyrus failed to file required annual and quarterly reports since then. Cyrus was served with the OIP on August 29, 2003. Cyrus failed to file an answer, due on September 22.1 A Respondent that fails to file an answer to the OIP may be deemed to be in default, and the administrative law judge may determine the proceeding against it. See 17 C.F.R. §§ 201.155(a), .220(f). Thus, Cyrus is in default, and the undersigned finds that the allegations in the OIP are true.

II. FINDINGS OF FACT

Cyrus registered its common stock pursuant to Section 12(g) of the Exchange Act on Form 10-SB on June 22, 2000. The registration became effective on August 21, 2000. Since that date Cyrus has not filed any annual or quarterly reports. Cyrus is now defunct, but its stock continues to be quoted in the pink sheets and to trade in low volumes.

III. CONCLUSIONS OF LAW

By failing to file required annual and quarterly reports, Cyrus violated Exchange Act Section 13(a) and Rules 13a-1 and 13a-13.

IV. SANCTION

Revocation of the registration of Cyrus's common stock will serve the public interest and the protection of investors, pursuant to Section 12(j) of the Exchange Act. It accords with Commission precedent and sanction considerations set forth in Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979), and with the sanctions imposed in similar cases in which corporations violated Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 by failing to file required quarterly and annual Reports. See Hamilton Bancorp, Inc., 79 SEC Docket 2680 (A.L.J. Feb. 24, 2003); see also WSF Corp., 77 SEC Docket 1831 (A.L.J. May 8, 2002).

Cyrus violated a crucial provision of the Exchange Act. The purpose of the periodic reporting requirements is to publicly disclose current, accurate financial information about an issuer so that investors may make informed decisions:

The reporting requirements of the Securities Exchange Act of 1934 is the primary tool which Congress has fashioned for the protection of investors from negligent, careless, and deliberate misrepresentations in the sale of stock and securities. Congress has extended the reporting requirements even to companies which are "relatively unknown and insubstantial."

SEC v. Beisinger Indus. Corp., 552 F.2d 15, 18 (1st Cir. 1977) (quoting legislative history).

Cyrus's violations were recurrent, egregious, and deprived the investing public of current and accurate financial information on which to make informed decisions.

V. ORDER

IT IS ORDERED that, pursuant to Section 12(j) of the Exchange Act, 15 U.S.C. § 78l(j), the REGISTRATION of the common stock of Cyrus Industries, Inc., IS REVOKED.

____________________
Carol Fox Foelak
Administrative Law Judge

Endnotes

1 By the terms of the OIP, the answer was due September 18, twenty days after service of the OIP. See OIP at 3; 17 C.F.R. § 201.220(b). However, the Commission's Washington, D.C., Headquarters offices were closed on Thursday, September 18, and Friday, September 19, due to weather conditions; September 22 is the next day that is neither a Saturday, a Sunday, nor a Federal legal holiday. See 17 C.F.R. § 201.160(a).

 

http://www.sec.gov/litigation/admin/34-48523.htm


Modified: 09/23/2003