SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17220 / November 6, 2001
SEC v. TIMOTHY S. VASKO, EDWARD B. WILLIAMSON, AND MICHAEL J. SCHUCHARD, U.S. District Court for the District of Colorado, C.A. No. 00-M-2593 (December 29, 2000)
SEC SETTLES FRAUD ACTION AGAINST TIMOTHY S. VASKO, FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF VIP GLOBAL CAPITAL, INC.
The Securities and Exchange Commission announced that it has settled its civil injunctive action against Timothy S. Vasko, the former chairman and chief executive officer of VIP Global Capital, Inc. The Commission's Complaint alleged that Vasko made materially misleading disclosure in VIP's filings with the Commission, particularly with respect to VIP's credit arrangement with its major source of financing; that Vasko, along with Edward B. Williamson, a stock promoter who published an investment newsletter, engaged in a scheme to tout VIP and manipulate the market for VIP's securities; and that Michael J. Schuchard, a former senior vice president and member of VIP's board, who also worked as a registered representative of a broker-dealer, fraudulently sold securities of VIP to his brokerage customers. The SEC settled with Williamson and Schuchard at the time it instituted its civil action. See SEC Litigation Release No. 16855 (January 5, 2001).
Vasko, without admitting or denying the allegations of the Complaint, agreed to a settlement whereby he would be permanently enjoined from violating Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rules 10b-5 and 13b2-1 thereunder, and from aiding and abetting violations of Section 13(a) of the Exchange Act and Rule 13a-1 thereunder. Vasko also paid a $40,000 civil penalty pursuant to Section 21(d)(3) of the Exchange Act. The U.S. District Court for the District of Colorado entered the order of Final Judgment against Vasko on April 17, 2001.