UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 48956 / December 18, 2003
Admin. Proc. File No. 3-11361
In the Matter of Paul Wayne Mason (a/k/a Louis Ronnie Sarpy), Kristin Luck Emery, and Laurence Mark Anderson (a/k/a Ron Laurence)
The Securities and Exchange Commission ("Commission") announced today that it issued an Order Instituting Public Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Order") against Paul Wayne Mason (a/k/a Louis Ronnie Sarpy) ("Mason"), Kristin Luck Emery ("Emery"), and Laurence Mark Anderson (a/k/a Ron Laurence) ("Anderson"), all former boiler-room operators in Orange County, California. Mason is incarcerated in the Chuckawalla Valley State Prison, located in Blythe, California. Emery is incarcerated in the Orange County Jail, located in Santa Ana, California. Anderson is a resident of Los Angeles, California.
In the Order, the Division of Enforcement alleges that the United States District Court for the Central District of California has issued a permanent injunction against Mason, Emery, and Anderson and found them liable for defrauding investors by using fraudulent boiler-room sales practices to offer and sell unregistered securities of North American Medical Products, Inc. ("NAMP"), including making false and misleading statements and material omissions to prospective investors about, among other things, the amount of commission being paid on the sale of NAMP stock and NAMP's business prospects.
The Commission instituted this administrative proceeding after the District Court entered Judgments by Default against Mason, Emery, and Anderson: (1) permanently enjoining them from future violations of Sections 5 and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; (2) ordering Mason individually to disgorge $227,259, consisting of $176,515 in ill-gotten gains plus prejudgment interest of $50,744; (3) ordering Mason, Emery, and Anderson jointly and severally to disgorge $414,474, consisting of $379,660 in ill-gotten gains plus prejudgment interest of $34,814; (4) imposing a penny stock bar against Mason, Emery, and Anderson; (5) imposing a civil penalty of $230,000 on Mason; and (6) imposing a civil penalty of $120,000 on both Emery and Anderson. [Securities and Exchange Commission v. North American Medical Products, Inc., et al., 03 Civ. 250 (AHS) (C.D. Cal.)].
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Mason, Emery, and Anderson an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions against Mason, Emery, and Anderson are appropriate and in the public interest pursuant to Section 15(b) of the Securities Exchange Act of 1934.
The Order provides that an Administrative Law Judge shall issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.