SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17423 / March 19, 2002
Securities and Exchange Commission v. U.N. Dollars Corp., et al., Civil Action No. 01-CV-9059 (AGS) (S.D.N.Y.)
FINAL JUDGMENT ENTERED AGAINST
NEW YORK INVESTMENT ADVISER HENRY WEINGARTEN
The Commission announced today that the Honorable Alan G. Schwartz of the United States District Court for the Southern District of New York has entered a Final Judgment against New York investment adviser Henry Weingarten. In its complaint, the Commission alleges, among other things, that Weingarten violated Section 17(b) of the Securities Act of 1933 and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Weingarten consented, without admitting or denying the Commission's allegations, to be permanently enjoined from violating these provisions and to pay a $15,000 civil penalty.
The Commission's complaint charges that Weingarten failed to disclose that he was paid 250,000 shares of U.N. Dollars ("UNDR") stock to promote the company's securities on his stock-picking Internet website, Afund.com, and in subscriber newsletters. The complaint also alleges that after having been compensated to promote UNDR's securities, Weingarten purchased $75,000 worth of UNDR securities for his investment advisory clients, without disclosing his conflict of interest to them, and without disclosing that he was paid 250,000 shares of UNDR stock.
In a related administrative proceeding, instituted on March 19, 2002, Weingarten was censured and ordered to comply with certain undertakings, including the requirement that he provide copies of the Commission's Order to his actual and prospective clients for the period of one year. Weingarten consented to the Order without admitting or denying the Commission's findings. [Release No. IA-2019]