SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
ADMINISTRATIVE PROCEEDING INSTITUTED AGAINST FASTLANE FOOTWEAR, INC. AND PRESIDENT, JOHN H. LEFERE
The Securities and Exchange Commission ("Commission") announced that on August 3, 1999, it instituted a public cease-and-desist proceeding against Fastlane Footwear, Inc. ("Fastlane"), a Jackson, Michigan based designer, manufacturer and marketer of licensed casual footwear, and its president, John H. Lefere ("Lefere"), pursuant to Section 8A of the Securities Act of 1933 ("Securities Act"). The Commission's Order alleges that Fastlane violated, and Lefere caused the violation of Sections 5(a) and 5(c) of the Securities Act. These sections of the Securities Act prohibit the offer or sale of unregistered securities in interstate commerce unless an exemption from registration applies.
The Division of Enforcement alleges that between December 1995 and September 1996, Fastlane and Lefere were involved in the sale of approximately 500,000 shares of Fastlane stock to investors in several states. The Order further alleges that the sales, which raised approximately $1.3 million for Fastlane, were made despite there being no registration statement on file with the Commission. Finally, because no registration statement was filed with the Commission before the sale of the securities, the Commission's Order alleges Fastlane violated and Lefere caused the violation of Sections 5(a) and 5(c) of the Securities Act.
A hearing will be scheduled before an Administrative Law Judge to take evidence on the staff's allegations and to afford the Respondents the opportunity to present any defense thereto. The purpose of the hearing is to determine whether the allegations are true and whether any remedial action should be ordered by the Commission.
This enforcement action is part of the Commission's four-pronged approach to attacking microcap fraud: enforcement, inspections, investor education and regulation. For more information about the SEC's response to microcap fraud and the litigation release for this case, visit the SEC's Microcap Fraud Information Center at http://www.sec.gov/news/extra/microcap.htm.