File No. 3-10125
Administrative Proceedings Instituted Against
Brad Haddy and Ronald D. Spencer
The Commission announced that it issued an Order Instituting Public Administrative Proceedings and Notice of Hearing pursuant to Sections 15(b)(6) and 19(h) of the Securities Exchange Act of 1934 ("Order") against Brad Haddy of Duluth, Minnesota and Ronald D. Spencer of Pompano Beach, Florida. In the Order, the Division of Enforcement alleges that Haddy participated in a scheme to manipulate the prices of the securities of Vista Capital Corp., Bellatrix Corp., and Castleton Investors Corp. while associated as a registered representative with L'Argent Securities in 1988. The Division of Enforcement alleges that Spencer participated in the scheme while associated with Sheffield Securities in 1988 and 1989.
The Division of Enforcement also alleges that in September, 1996, the United States District Court for the District of New Jersey entered a judgment of conviction against Haddy for conspiracy to commit securities fraud and securities fraud and that in December, 1996, the United States District Court for the District of New Jersey entered a judgment of conviction against Spencer for conspiracy to commit securities fraud. Haddy was found guilty of felony charges following a jury trial, while Spencer pled guilty to felony charges.
The Division of Enforcement further alleges that the securities of Vista Capital Corp., Bellatrix Corp., and Castleton Investors Corp. were penny stocks and that Haddy and Spencer participated in the manipulation of the prices of these securities through various fraudulent trading practices with the goal of profiting from the sale of the securities at prices determined, at least in part, by the manipulation.
A hearing before an administrative law judge will be scheduled to determine whether the allegations in the Order are true and to determine what remedial action, if any, is appropriate in the public interest.