SECURITIES ACT OF 1933
Release No. 7688 / May 25, 1999
SECURITIES EXCHANGE ACT OF 1934
Release No. 41446 / May 25, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9911
PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST MICHAEL D. YOUNG
The Securities and Exchange Commission ("Commission") today announced it issued an Order Instituting Public Administrative and Cease-and-Desist Proceedings pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Sections 15(b), 19(h) and 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Michael D. Young ("Young"), formerly a telephone sales person with Chief Exploration & Development Corp., which offered and sold fractional undivided interests in two gas well leases.
The Order alleges that, from approximately June 1996 through September 1996, Young willfully violated Section 17(a) of the Securities Act and Sections 10(b) and 15(a)(1) of the Exchange Act and Rule 10b-5 promulgated thereunder. According to the Order, Young misrepresented the high-risk, speculative nature of the investment through such claims that it was "almost a sure thing" with hardly any risk. Young, who earned commissions of approximately 10 percent, was not registered as a broker or dealer with the Commission when he sold these interests to investors.
A hearing will be held before an administrative law judge to determine whether the staff's allegations against Young are true, and if so, what remedial sanctions are appropriate in the public interest, and whether Young should be ordered to pay disgorgement and/or civil penalties.