U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22998 / May 22, 2014
Securities and Exchange Commission v. Steven B. Heinz, S.B. Heinz & Associates, Inc., Civil Action No. 2:13-cv-00753 (USDC Utah, Filed August 8, 2013)
SEC Obtains Final Judgment Against Steven B. Heinz and S.B. Heinz & Associates, Inc.
On April 28, 2014, the United States District Court for the District of Utah entered a final judgment against Steven B. Heinz (Heinz) and S.B. Heinz & Associates, Inc. (S.B. Heinz), in the civil action entitled Securities and Exchange Commission v. Steven B. Heinz, et al., Civil Action Number 2:13-CV-00753. Heinz and S.B. Heinz consented to the issuance of the final judgment and Heinz admitted to all of the material facts the SEC alleged in its complaint, including admitting that he misappropriated approximately $1 million in investors' funds which he commingled with his own money and used for purposes such as the payment of his personal credit cards, household expenses, and personal travel.
The final judgment permanently enjoins Heinz and S.B. Heinz from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act. The judgment also requires Heinz and S.B. Heinz to, jointly and severally, pay disgorgement and prejudgment interest of $3,656,675.84.
In addition, on May 21, 2014, an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (Order) was issued against Heinz. The Order finds that Heinz provided investment advice to and solicited investments from individuals, received compensation for providing investment advice and acted as an investment adviser. The Order bars Heinz from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization and from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock. Heinz consented to the issuance of the Order.