U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21351 / December 23, 2009
Securities and Exchange Commission v. Golden Apple Oil and Gas, Inc., et al., Case No. 09-Civ-7580 (HB) (S.D.N.Y.)
On December 21, 2009, the United States District Court for the Southern District of New York entered a Judgment against former Golden Apple Oil and Gas, Inc. ("Golden Apple") president Jay Budd. Without admitting or denying the allegations in the Commission's Complaint, Budd consented to entry of the Judgment, which prohibits Budd from acting as an officer or director of a public company, permanently bars Budd from participating in an offering of penny stock, and permanently enjoins Budd from violating Sections 5 and 17(a) of the Securities Act, 15 U.S.C. §§ 77e and 77q(a), Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240.10b-5 thereunder. The Judgment also orders Budd to pay disgorgement with prejudgment interest and a civil penalty in amounts to be determined by the Court upon the Commission's motion.
The Commission commenced this action by filing its Complaint on August 31, 2009. The Complaint alleges that Budd and others committed securities law violations in connection with a fraudulent scheme to artificially inflate the market for Golden Apple stock. The litigation is continuing with respect to the remaining defendants.