U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22729 / June 19, 2013
Securities and Exchange Commission v. Thomas G. Massey, Civil Action No. 4:13-mc-00026-A (N.D. Tex.) (June 18, 2013)
SEC Files Subpoena Enforcement Action Against Thomas G. Massey for Failure to Produce Documents in Market Manipulation Investigation
The Securities and Exchange Commission announced today that it has filed a subpoena enforcement action in the U.S. District Court for the Northern District of Texas against Thomas G. Massey. According to the filing, the SEC is investigating possible market manipulation in connection with transactions in the securities of Chimera Energy Corporation (Chimera), whose shares were traded on the over-the-counter market. Pursuant to subpoena issued in February 2013, Massey was obligated to produce documents to the Commission, but has failed to do so. Accordingly, the SEC filed its Application for an Order Requiring Compliance with Administrative Subpoena.
The SEC's application explains that beginning in July 2012, Chimera commenced a promotional campaign that caused a dramatic increase in the trading volume and price of its stock. The SEC is investigating, among other things, whether the claims in Chimera's press releases are materially false or misleading. On October 25, 2012, the SEC temporarily suspended trading in the securities of Chimera because of questions concerning the accuracy and adequacy of publicly disseminated information about, among other things, Chimera's business prospects and agreements.
As part of its investigation, the staff in the SEC's Fort Worth Regional Office issued a subpoena to Massey in February 2013 seeking, among other things, materials related Massey's work on behalf of Chimera. According to the SEC's court papers, Massey played an important role in assisting Chimera with its business development and promotional efforts. Massey's work included assisting Chimera's executives in their attempts to establish a business relationship with a certain company based in a foreign nation, and providing draft press releases for review and approval by Chimera's executives.
Pursuant to its application, the SEC is seeking an order from the federal district court compelling Massey to produce all materials responsive to the subpoena and to provide sworn testimony. The SEC notes that it is continuing to conduct a fact-finding investigation and has not concluded that anyone has broken the law.