U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19239 / May 25, 2005
SECURITIES AND EXCHANGE COMMISSION V. DONALD RUTLEDGE And GREGORY SKUFCA, United States District Court for the District of Colorado, Civil Action No. 00-K-1751
The Securities and Exchange Commission ("Commission") today announced that on, July 26, 2004, following a ten-day trial in Denver, Colorado, a jury returned a verdict in favor of the defendants, Donald Rutledge and Gregory Skufca. The Commission charged Rutledge and Skufca with violating the federal securities laws by engaging in a fraudulent scheme to manipulate the public trading market for stock issued by Snelling Travel, Inc. ("Snelling Travel"), quoted on the OTC Bulletin Board, in December 1999.
The Commission alleged at trial that Rutledge and Skufca, working together, implemented their scheme by, among other things, restricting the market supply of Snelling Travel stock and trading the stock between themselves at prices far in excess of actual market demand. The Commission also alleged that, through their manipulative devices, Rutledge and Skufca attempted to maintain, and maintained, the artificial stock price for Snelling Travel from December 16 through December 31, 1999. The Commission further alleged that Skufca personally obtained at least $500,000 in illicit profits as a result of the scheme.
The Commission originally brought its case in September 2000. The Commission charged Rutledge and Skufca with 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 promulgated thereunder.
SEC v. Donald Rutledge and Gregory Skufca, Civil Action No. 00-K-1751 (D. Colo.). For more information, see Litigation Release No. 16681 (September 6, 2000).