U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18737 / June 4, 2004

SECURITIES & EXCHANGE COMMISSION v. SCOTT ALEXANDER GRYSKIEWICZ, United States District Court for the Eastern District of New York, Civil Action No. 98 Civ. 7688 (NG)

The Securities and Exchange Commission announced today that the United States District Court for the Eastern District of New York entered on May 20, 2004, a Final Judgment on Consent Against Defendant Scott Alexander Gryskiewicz and Relief Defendant American Securities, Inc. ("American (NJ)"). Gryskiewicz, age 33, and a resident of Nutley, New Jersey, consented on his behalf and on behalf of American (NJ) to the Final Judgment, without admitting or denying the allegations of the Commission's Complaint, filed on December 15, 1998, which alleged that:

1. Gryskiewicz, from at least May 1998 through December 1998, unlawfully acted as an unregistered broker, directly and through an office that he operated in Lodi, New Jersey. In the course of his unlawful activity as an unregistered broker, Gryskiewicz obtained approximately $70,000 by offering and selling to at least 71 investors unregistered securities in the form of units consisting of common stock and warrants ("Units") issued by Pan American Securities, Inc. ("Pan American").
    
2. Gryskiewicz made telephonic "cold calls" and offered and sold the Pan American Units to investors by means of a variety of false and misleading representations, including false claims that: a) Pan American was about to make an initial public offering ("IPO"); b) the Pan American Units were freely tradable, when they were restricted; and c) the Pan American Units could be sold for a substantial profit after the purported IPO.
    
3. Gryskiewicz also conducted another fraudulent offering. Between at least October 1998 through December 1998, Gryskiewicz attempted to solicit investments in a purported private placement of unregistered common stock and warrants issued by Freetrade.com, Inc. ("Freetrade"). In the course of offering Freetrade securities, Gryskiewicz disseminated a private placement memorandum that falsely represented that the offered Freetrade securities are "immediately tradable," when they are, in fact, restricted.
    

The Final Judgment, which incorporates the relief obtained by the Commission in an earlier Partial Judgment on Consent against Gryskiewicz, entered on July 16, 2003, permanently enjoins Gryskiewicz from committing future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C. §77q(a), and Sections 10(b), 15(a)(1) and 15(c)(1) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§78j(b), 78o(a)(1) and 78o(c)(1), and Rules 10b-3, 10b-5 and 15c1-2 thereunder, 17 C.F.R. §§240.10b-3, 240.10b-5 and 240.15c1-2. The Final Judgment also contains an equitable bar that prevents Gryskiewicz from participating in the offer or sale of unregistered securities. Specifically, it enjoins Gryskiewicz from participating in the offer to sell or offer to buy any security, while acting as, or on behalf of, or in association with, an issuer, underwriter, broker or dealer involved in such offer, unless a registration statement has been filed with respect to such security.

The Final Judgment orders Gryskiewicz and American and (NJ) to jointly and severally pay disgorgement of $70,461.73 with prejudgment interest of $29,544.40, for a total of $100,006.13. In settling with Gryskiewicz without insisting on a civil monetary penalty, the Commission recognizes Gryskiewicz' substantial cooperation with criminal authorities. Previously, Gryskiewicz consented to a Commission order, dated September 2, 2003, which barred Gryskiewicz from associating with any broker or dealer.

See prior Litigation Releases #16005 and 18278.

http://www.sec.gov/litigation/litreleases/lr18737.htm