U.S. Securities and Exchange Commission
Litigation Release No. 18007 / February 27, 2003
FINAL JUDGMENT SETTING CIVIL MONEY PENALTY ENTERED AGAINST STUART A. SLONIN
SECURITIES AND EXCHANGE COMMISSION V. STUART A. SLONIN AND THE STRATEGIES GROUP, INC., CASE NO. 02-60932-CIV-HUCK/TURNOFF (S.D. Fla.)
The Securities and Exchange Commission (SEC) announced that on February 20, 2003, the Honorable Paul Huck, United States District Judge for the Southern District of Florida, entered a Final Judgment Setting Civil Money Penalty Against Stuart A. Slonin. The Final Judgment was entered following a hearing conducted on February 14, 2003, to resolve the civil money penalty issue. The Court ordered Slonin to pay a civil penalty in the amount of $45,000.
On July 9, 2002, the SEC filed its Complaint alleging that from at least July 2000 through October 2001, Slonin and The Strategies Group, Inc. (TSG) offered "prime bank instruments" to attendees at insurance seminars that Slonin conducted. The SEC alleged that Slonin misrepresented that the investments were risk free and provided returns of 15-50%. The Complaint further alleged that the investments did not exist. The SEC's Complaint charged Slonin and TSG with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. On November 9, 2002, the Court entered Judgments of Permanent Injunction and Other Relief against Slonin and TSG. The Judgments, entered by their consent without admitting or denying the allegations of the SEC's Complaint, enjoined Slonin and TSG from violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition to enjoining Slonin and TSG, the Judgments also provided for the imposition of a civil money penalty, in amounts to be determined by the Court upon the SEC's motion. On February 11, 2003, the SEC filed a Notice of Voluntary Dismissal with Prejudice of its Outstanding Penalty Claim Against TSG.