UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17763 / October 2, 2002
SECURITIES AND EXCHANGE COMMISSION V. DAVID I. NAMER, et al, CIVIL ACTION NO. 97-CIV-2085 (S.D.N.Y.)
MICHAEL PLOSHNICK PAYS IN EXCESS OF $1.9 MILLION IN DISGORGEMENT AND AGREES TO PERMANENT BAR FROM SECURITIES INDUSTRY TO SETTLE SEC CHARGES
On September 13, 2002, the United States District Court for the Southern District of New York entered a final judgment as to Defendant Michael Ploshnick and Relief Defendant Shelli Ploshnick, both of Boca Raton, Florida, in the matter SEC v. David I. Namer, et al. The judgment, to which the Ploshnicks consented without admitting or denying the allegations in the Commission's complaint, enjoins Michael Ploshnick from violating the registration and antifraud provisions of the securities laws, Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The consent judgment orders the Ploshnicks to pay disgorgement in the amount $1,975,000, which has been satisfied out of funds already forfeited in connection with a related criminal action and on deposit in an interest bearing account in the registry of the court in New York. The judgment also waives payment of prejudgment interest and does not impose a civil penalty based upon the sworn representations of Michael Ploshnick and Shelli Ploshnick in their Statements of Financial Condition and other documents submitted to the Commission.
The Commission's complaint alleged, among other things, that Michael Ploshnick violated the registration and antifraud provisions of the securities laws by participating in a scheme with Defendant David I. Namer to sell millions of dollars in worthless debt securities through the brokerage firm Meyers Pollock Robbins, Inc., which was owned by Shelli Ploshnick and operated by Michael Ploshnick. The complaint alleged that the Ploshnicks directly or indirectly received sales proceeds from the illegal sales totaling $1,975,000. In connection with the settlement with the Ploshnicks, the complaint against their defunct brokerage firm, Meyers Pollock Robbins, Inc., was dismissed by order of the court dated July 3, 2002.
Previously in the case, the court issued a temporary restraining order against all defendants except Shelli Ploshnick, froze the assets of Namer and two companies associated with Namer, Network Mortgage Services, Inc., and Offshore Insurance Services, Inc., and required the Ploshnicks to furnish security for payment by them of the $1,975,000.
The SEC's civil enforcement action remains pending against Namer, Network Mortgage Services, Inc., and Offshore Insurance Services, Inc. On August 20, 2002, following a seven-week trial in a related criminal case prosecuted by the United States Attorney for the Western District of Tennessee, Namer was found guilty by a federal jury of 93 counts of conspiracy, securities fraud, mail fraud, wire fraud, money laundering, and tax evasion. In connection with that criminal matter, Michael Ploshnick previously entered a guilty plea on December 1, 2000 to criminal charges of money laundering and conspiracy to commit securities fraud, wire fraud, mail fraud, and money laundering. For more information about the criminal case, see Litigation Release No. 17696 (August 22, 2002).
In a related administrative proceeding, Michael Ploshnick consented to the issuance of a Commission Order, pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of the Investment Advisers Act of 1940 that bars him from association with any broker or dealer or investment adviser. For more information on the administrative proceeding, see Securities Exchange Act Release No.46584.
See also Litigation Release No. 15307 (March 26, 1997).