U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19482 / December 2, 2005
SEC v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.)
On November 29, 2005, the Honorable Dale A. Kimball, United States District Judge for the District of Utah, entered an order against Jon R. Marple and Grateful Internet Associates, LLC, an entity controlled by Marple, granting the Commission’s motion for summary judgment and permanently enjoining Marple and Grateful Internet Associates from future violations of the antifraud provisions of the federal securities laws.
In October 2003, the Commission filed a Complaint, in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in a scheme to sell securities in five United States-based microcap issuers to hundreds of investors located primarily in the United Kingdom, Australia and New Zealand through a boiler room located in Vientiane, Laos. Jon R. Marple worked as a consultant for F-10 Oil and Gas Properties, Inc one of the microcap issuers named in the Complaint. The court’s order contained findings that Marple made material misrepresentations in drafting F-10 Oil and Gas Properties, Inc. filings with the Commission.
The order specifically enjoins Marple and Grateful Internet Associates from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and Section 17(a) of the Securities Act of 1933 and orders them to pay disgorgement of $149,487 plus prejudgment interest of $21,463.27 together with a civil penalty of $100,000. Marple was also barred from participating in any offering of penny stock.