SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16339 / October 19, 1999
SECURITIES AND EXCHANGE COMMISSION v. BIO-TECH INDUSTRIES, INC., LORETTA DAVIS, JOEY DAVIS, MICHAEL DAVIS, GREGORY GILBERT and STEVEN SCHWARTZ, Civil Action No. 98-2298 (D.D.C.)
SEC SETTLES MICROCAP MANIPULATION CASE AGAINST JOEY DAVIS
The Securities and Exchange Commission reached a settlement with Joey Davis ("Davis"), President of Bio-Tech Industries, Inc. ("Bio-Tech") (formerly Twenty First Century Health, Inc.), in the civil action SEC v. Bio-Tech Industries, Inc., et al. As part of the settlement, without admitting or denying the Commission's allegations, Davis consented to the entry of an order permanently enjoining him from violations of Section 10(b) of the Securities and Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5, and requiring him to pay a civil penalty of $25,000.
In its complaint, the Commission alleged that, among others, Davis participated in preparing, reviewing, or approving five separate public announcements concerning Bio-Tech that he knew or was reckless in not knowing contained materially false and misleading information. In these press releases the company claimed an exclusive license to market "breakthrough" medical devices, extolled its highly-successful efforts to market a new line of nutritional supplements, and reported the acquisition of what appeared to be a successful and nationally known tea company. Each of those claims was materially false and misleading, according to the complaint.
The Commission previously has taken action with respect to these matters. See Lit. Rel. No. 15996 (December 9, 1998); Lit. Rel. No. 15600 (December 22, 1997).
This enforcement action is part of the Commission's four-pronged approach to minimizing Microcap fraud: enforcement, inspections, investor education and regulation. For more information about the SEC's response to Microcap fraud, visit the SEC's Microcap Fraud Information Center at http://www.sec.gov/news/extra/microcap.htm.http://www.sec.gov/litigation/litreleases/lr16339.htm