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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

Securities Exchange Act of 1934
Release No. 50387 / September 15, 2004

Administrative Proceeding File No. 3-11666

In the Matter of Robert Cord Beatty

The Commission has instituted administrative proceedings against Robert Cord Beatty ("Beatty") pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act). The proceedings are based on an injunction entered against Beatty on August 26, 2004, which enjoined Beatty from future violations of the antifraud and lying to auditors provisions of the federal securities laws.

In the underlying civil action the Division of Enforcement alleged, among other matters, that in or about December 1993, Beatty entered into a financing agreement to provide funding for AutoCorp Equities, Inc., a company of which he was an officer, to promote a live stage production of the American Gladiators television show in Las Vegas, Nevada. The Division of Enforcement also alleged that the financing transaction involved AutoCorp's acquisition of $5 million in certificates of deposit, ostensibly issued by a Russian bank. The Division of Enforcement further alleged that while the CDs had a face value of $5 million, Beatty knew the CDs were worthless because the CDs were not, in fact, issued by the Russian bank, but were instead printed at a Florida Kinko's copy center by one of Beatty's co-defendants in the civil case. Finally, the Division of Enforcement alleged that Chariot included the Russian CDs as assets on its financial statements, which were included a Form 10-Q filed with the Commission.

The Division of Enforcement further alleges that Beatty was enjoined from future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-2 thereunder and from aiding and abetting violations of Section 13(b)(2)(A) of the Exchange Act.

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Beatty an opportunity to dispute these allegations, and to determine what remedial sanctions, if any, are appropriate and in the public interest with respect to Beatty's participation in offerings of penny stock.

The Commission directed that the Administrative Law Judge issue an initial decision no later than 210 days from the date of service of the Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.

See also the Order in this matter

 

http://www.sec.gov/litigation/admin/34-50387.htm


Modified: 09/15/2004