U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21700 / October 19, 2010
Securities and Exchange Commission v. East Delta Resources Corp., Victor Sun, David Amsel and Mayer Amsel, Civil No. CV10-0310 (E.D.N.Y.)
SEC SETTLES FRAUD AND RELATED CHARGES AGAINST EAST DELTA RESOURCES CORP. AND ITS FORMER CEO, VICTOR SUN IN MARKET MANIPULATION CASE
The United States Securities and Exchange Commission (Commission) announced today the recent settlement of its claims against Victor Sun (Sun), the former CEO of East Delta Resources Corp. (East Delta), and East Delta in a civil action filed earlier this year in the United States District Court for the Eastern District of New York. The Commission's complaint charges that Sun, East Delta, David Amsel, and Mayer Amsel violated the federal securities laws in a scheme to manipulate the market for the securities of East Delta.
Without admitting or denying the allegations in the Commission's complaint, Sun consented to the entry of a final judgment that permanently enjoins him from violating certain provisions of the federal securities laws, imposes an officer and director bar, permanently bars him from participating in the offer or sale of penny stocks, imposes disgorgement in the amount of $109,411 plus prejudgment interest in the amount of $31,485, and orders him to pay a civil penalty of $70,000. The judgment against Sun was entered on September 22, 2010. Without admitting or denying the allegations in the Commission's complaint, East Delta consented to the entry of a final judgment against it containing certain injunctive relief and the prospect of monetary penalties to be ordered at a later date. The judgment against East Delta was entered on October 13, 2010.
According to the complaint, from 2004 through at least 2006, Sun and East Delta artificially inflated the volume of market activity for, and in turn the price of, East Delta stock, issued false press releases, and illegally sold East Delta shares received at little or no cost. The complaint alleges that the fraudulent proceeds from this scheme totaled more than $1,400,000.
After the filing of its complaint, the Commission suspended trading in East Delta securities and ultimately revoked the registration of the securities of East Delta.
The final judgment against Sun permanently enjoins him from violating the following antifraud, registration, reporting, and disclosure provisions of the federal securities laws: Sections 17(a), 5(a), and 5(c) of the Securities Act of 1933 (Securities Act); Sections 10(b), 13(a), and 16(a) of the Securities Exchange Act of 1934 (Exchange Act); and Exchange Act Rules 10b-5, 12b-20, 13a-1, 13a-14, and 16a-3. The final judgment bars Sun from serving as an officer or director of any company that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act. It also bars him from participating in the offer or sale of any penny stock, as that term is defined by Section 3(a)(51) of the Exchange Act and Rule 3a-51 thereunder, imposes disgorgement in the amount of $109,411 plus prejudgment interest in the amount of $31,485, and orders him to pay a civil penalty of $70,000 under Securities Act Section 20(d) and Exchange Act Section 21(d)(3).
The final judgment entered against East Delta permanently enjoins it from violating the following antifraud, registration, and reporting provisions of the federal securities laws: Sections 17(a), 5(a), and 5(c) of the Securities Act; Sections 10(b) and 13(a) of the Exchange Act; and Exchange Act Rules 10b-5, 12b-20, 13a-1, and 13a-13. The final judgment also provides that upon motion of the Commission, the Court may order East Delta to pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty.
The Commission's case is still pending against the remaining defendants, David Amsel and Mayer Amsel.
For further information, see Release No. 34-61423, January 26, 2010; Litigation Release No. 21395, January 26, 2010; Release No. 34-61526, February 17, 2010 (order revoking registration); the complaint filed on January 26, 2010; the judgment as to Sun; and the judgment as to East Delta.