Litigation Release No. 17052 / June 25, 2001
SECURITIES AND EXCHANGE COMMISSION V. THOMAS CARTER, Civil Action No. CV-00-09457 GHK (SHx) (C.D. Cal.)
The Securities and Exchange Commission ("Commission") today announced that a final Judgment has been entered against defendant Thomas Carter ("Carter"). On June 12, 2001, U.S. District Judge George H. King entered a final judgment by default against Carter upon a showing that Carter had failed to respond to the Commission's complaint. Carter was ordered to disgorge $12,816.47 in ill-gotten gains, to pay prejudgment interest thereon and to pay a civil penalty of $12,816.47.
The Commission filed its complaint on September 5, 2000, alleging that Carter manipulated the prices of securities that he owned by disseminating false material information about the companies. Carter disseminated a mass email purporting to be from a "momentum trading service" called the "Unity List." The emails recommended that the recipients purchase the stock of the profiled companies at specific dates and times. Once the stock price began to rise in response to the emails, Carter sold his stock at a profit. Carter made a total profit of $12,816.47. The permanent injunction against Carter prohibits future violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.