SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16337 / October 15, 1999
Securities and Exchange Commission v. Luis Bulas, Jr.
Civil Action No. 98-2238 CIV-LENARD
Luis Bulas, Jr., Permanently Enjoined and Ordered To Pay
Disgorgement and a Civil Penalty
The Securities and Exchange Commission ("SEC") announced that on October 5, 1999, a Final Judgement of Permanent Injunction and Other Relief ("Judgement") was entered against Luis Bulas, Jr. ("Bulas") by default enjoining him from future violations Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. This Judgment also ordered Bulas to pay disgorgement of $671,469.86 and a civil penalty of $671,469.86. This Judgment stemmed from SEC allegations that from approximately March 1995 through October 1997, Bulas misappropriated approximately $700,000 from eleven investors. According to the SEC's previously filed complaint, Bulas, a former registered representative offered brokerage services to the public through his unregistered broker-dealers, JLH Financial Services, Inc. and J.L. Henry & Company, Inc. The complaint alleged that Bulas obtained funds from investors on the false pretense that he would invest their monies in stocks, mutual funds, secured promissory notes and other investments. The SEC further alleged that Bulas employed a variety of schemes and devices in order to misappropriate investors' funds, including the creation of false stock certificates and false purchase confirmation statements.