Initial Decision Barring Steven Sirianni Declared Final
The Commission has declared final the initial decision of an administrative law judge barring Steven Sirianni from association with any broker or dealer. The initial decision found that, on Nov. 14, 2006, the Commission filed a civil suit in the United States District Court for the Southern District of New York against Sirianni and others. Subsequently, a jury determined that Sirianni had accepted undisclosed kickbacks of $75,800 for recommending the stock of World Information Technology, Inc. in violation of the antifraud and broker registration provisions of the securities laws.
On June 10, 2008, the district court permanently enjoined Sirianni from future violations of Securities Act Section 17(a), Exchange Act Sections 10(b) and 15(a)(1), and Exchange Act Rule 10b-5. The court ordered Sirianni to disgorge $75,800, plus prejudgment interest, and to pay a civil money penalty of $110,000. Sirianni has appealed this judgment to the United States Court of Appeals for the Second Circuit. (Rel. IA-2823; File No. 3-13084)
Initial Decision Revoking Registration of Securities Issued by Waterfalls Corp. Declared Final
The Commission has declared final the decision of an administrative law judge revoking, pursuant to Section 12(j) of the Securities Exchange Act of 1934, the registration of all classes of securities of Waterfalls Corp. (Waterfalls). The law judge found that Waterfalls has not filed any periodic reports since it filed a Form 10-QSB for the period ending June 30, 2001.
The law judge further found that Waterfalls stated that it had engaged an independent auditor but failed to disclose this information as specified in Form 8-K. Waterfalls also failed to file a Form 8-K disclosing a change in control and the appointment of Zachary Broch as its president, director, and sole shareholder although the Commission's staff had reminded Waterfalls of this requirement. The law judge took official notice of the fact that Broch was convicted in 1998 by the United States District Court for the Northern District of Florida of the felony of Uttering a Counterfeit Obligation of the United States. (Rel. 34-59122; File No. 3-13153)
Disgorgement, Prejudgment Interest, and Civil Penalties Entered Against Ira Dicapua
The Commission announced that on December 16, the Honorable Victor Marrero, United States District Judge for the Southern District of New York, granted the Commission's motion for summary judgment and entered a Decision and Order against defendant Ira Dicapua, ordering him to pay $117,500 in disgorgement, $40,323.24 in prejudgment interest, and a civil penalty of $117,500.
On May 31, 2007, the Court entered a partial judgment by consent against Dicapua, which enjoined Dicapua from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Dicapua consented to the entry of the judgment without admitting or denying any of the allegations in the Commission's complaint.
Previously, on May 2, 2007, the Court entered default judgments against Dicapua's co-defendants World Information Technology, Inc. and Gary Morgan. Litigation Release No. 20109 (May 10, 2007). On June 10, 2008, after a jury trial, the Court entered a final judgment against remaining co-defendant Steven Sirianni. Litigation Release No. 20615 (June 12, 2008). For further information, see Litigation Release No. 19910 (Nov. 15, 2006). [SEC v. World Information Technology, Inc., et al., Civil Action No. 06-CV-13181 (VM) (S.D.N.Y.)] (LR-20832)
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