U.S. Securities and Exchange Commission
Litigation Release No. 21821 / January 21, 2011
Securities and Exchange Commission v. Wall Street Communications, Inc., et al., Civil Action No. 8:09-CV-1046-JSM-TGW (M.D. Fla.)
The Commission announced that on January 6, 2011, the United States District Court for the Middle District of Florida entered a judgment of permanent injunction and other relief against Defendant Donald R. McKelvey. The judgment enjoins McKelvey from violations of Sections 5(a), 5(c), 17(a)(2), and 17(a)(3) of the Securities Act of 1933 ("Securities Act"). In addition to injunctive relief, the judgment bars McKelvey from participating in the offering of any penny stock and orders him to pay disgorgement, prejudgment interest, and a civil penalty in amounts to be later determined. McKelvey consented to entry of the judgment without admitting or denying any of the allegations in the complaint.
The Court also approved the stipulation of dismissal as to the scienter based claims against McKelvey alleging violations of Section 17(a)(1) of the Securities Act and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and as to the Commission's request for an officer-and-director bar.
The Commission began this action by filing its complaint on June 5, 2009, against Wall Street Communications, Inc., Howard Scala, Ross Barall, and McKelvey, charging them with securities fraud in connection with a series of stock manipulation schemes and a fraudulent, unregistered distribution of stock.