U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22956 / March 31, 2014
Securities and Exchange Commission v. Syndicated Food Services International, Inc., et al., Civil Action No. 04-CV-1303 (NGG) (E.D.N.Y.)
Court Enters Final Judgments Against Defendants Adam Klein, William Keeler, and Jeffrey Richardson
The Securities and Exchange Commission announced today that on March 28, 2014, the Honorable Nicholas G. Garaufis, United States District Judge for the Eastern District of New York, entered final judgments against defendants Adam Klein, William Keeler, and Jeffrey Richardson. Defendants Klein, Keeler, and Richardson were the final remaining defendants in this proceeding, and with the entry of the final judgments against them, the Court ordered this case closed.
On March 4, 2009, March 9, 2009, and November 2, 2011, the Court entered partial judgments on consent against defendants Klein, Richardson, and Keeler, respectively. Pursuant to these partial judgments, the Court enjoined defendants Klein, Richardson, and Keeler from violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. In addition, Keeler was also enjoined from violations of Section 13(a) of the Exchange Act, and Rules 12b-20, 13a-1, and 13a-13 thereunder, and barred from serving as an officer and director of any public company, and Klein was permanently barred from participating in any penny stock offering. The final judgments entered by the Court on March 28, 2014, orders Klein to disgorge $151,500 and pay a $5,500 civil penalty, Richardson to disgorge $274,000 and pay a $55,000 civil penalty, and Keeler to pay a $220,000 civil penalty.
The Commission’s Complaint alleged that from 1997 through 2003, the defendants participated in a massive broker bribery scheme involving the stock of nine public companies, including Syndicated Food Service International, Inc. Some of these defendants received undisclosed kickbacks for selling Syndicated stock to the public, executed manipulative trades of Syndicated stock to create the impression of increased demand for Syndicated stock, and filed false and misleading periodic reports with the Commission on Syndicated's behalf.
For further information, see Litigation Release No. 18643 (March 29, 2004), Litigation Release No. 21239 (Oct. 7, 2009), Litigation Release No. 21273 (Nov. 2, 2009), and Litigation Release No. 22751 (July 12, 2013).
PERSONS TO CONTACT:
Gerald Gross, Assistant Regional Director, 212-336-0085, Todd D. Brody, Senior Trial Counsel, 212-336-0080