Litigation Release No. 22208 / December 22, 2011
Securities and Exchange Commission v. David Ronald Allen, et al., Civil Action No. 3:11-CV-882-O (N.D. Tex.)
SEC OBTAINS JUDGMENT IN CASE INVOLVING PROMOTION OF CHINA VOICE HOLDING CORP.
On December 21, 2011, the Honorable Reed O’Connor, United States District Judge for the Northern District of Texas, entered an order permanently enjoining Robert Wilson and his company, Strategic Capital.
Without admitting or denying the allegations in the Commission’s complaint, Wilson and Strategic Capital consented to the entry of a judgment that permanently enjoins them from violating Section 17(b) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment also provides that upon motion of the Commission, the Court may order disgorgement of ill-gotten gains and prejudgment interest thereon against Wilson, Strategic Capital, and another Wilson company, Green Horseshoe Holdings, Inc. In addition, pursuant to the judgment, the Court may order civil penalties in amounts the Court deems appropriate against Wilson and Strategic Capital, as well as a penny stock bar against Wilson.
The Commission’s complaint, originally filed on April 28, 2011, alleged that China Voice Holding Corp., its former CFO and co-founder David Ronald Allen, and former CEO and President William F. Burbank IV made a series of false and misleading statements and omissions regarding China Voice’s financial condition and business prospects. In addition, the SEC charged China Voice shareholders Ilya Drapkin and Gerald Patera with financing stock promotion campaigns regarding China Voice. These campaigns included a blast fax campaign conducted by Robert Wilson and Strategic Capital, which the SEC alleged contained false and misleading statements and failed to accurately disclose the amount and source of the compensation Wilson, Strategic Capital, and Green Horseshoe Holdings, Inc. received.
The Commission previously entered into settlements with the other defendants in this matter: Allen, Burbank, China Voice, Drapkin, Patera, Alex Dowlatshahi, Christopher Mills, and various of their companies.
See also: Litigation Release Nos. 21953, 21992, 22006, 22113, 22165, and 22178.