UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 51314 / March 3, 2005
Admin. Proc. File No. 3-11843
ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST SAVERIO (SAMMY) GALASSO III
The Commission announced that it issued an order instituting proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against Saverio (Sammy) Galasso III. In the order the Division of Enforcement alleges that a final judgment by default was entered against Galasso, permanently enjoining him from 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, in the civil action captioned Securities and Exchange Commission v. Spectrum Brands Corp. et al., Civil Action Number 01-CV-8257 (USDC/EDNY). The Commission's Complaint in SEC v. Spectrum Brands et al. alleged that Galasso, among others, participated in a fraudulent scheme to exploit the nation's fear of anthrax and bio-terrorism to manipulate the stock price of Spectrum Brands. As part of this scheme, Galasso and others claimed falsely to have a hand-held device called the DeGERMinator capable of "WIP(ING) OUT SURFACE GERMS IN LESS THEN 5 SECONDS, INCLUDING ANTHRAX." They also misrepresented the true ownership and control of Spectrum Brands.
A hearing before an administrative law judge will be scheduled to determine whether the allegations in the Order Instituting Proceedings are true, to provide Galasso an opportunity to dispute these allegations, and to determine whether, pursuant to Section 15(b) of the Exchange Act, it is appropriate to bar Galasso from participating in any offering of penny stock.
The Commission directed that an administrative law judge shall issue an initial decision in this matter within 210 days from the date of service of the Order Instituting Proceedings.
See also the Order in this matter