UNITED STATES OF AMERICA
In the Matter of
Stephen B. Marek
ORDER INSTITUTING A PUBLIC PROCEEDING
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that a proceeding be instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") with respect to Stephen B. Marek ("Marek").
In anticipation of the institution of these proceedings, Marek has submitted to the Commission an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party and without admitting or denying the findings, except the jurisdiction of the Commission over him and over the matters set forth herein, and the facts contained in paragraphs III(B) and (C) below, which are admitted, Marek consents to the entry of this Order Instituting a Public Proceeding Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Penny Stock Bar ("Order").
Accordingly, IT IS ORDERED that a proceeding pursuant to Section 15(b)(6) of the Exchange Act is hereby instituted.
On the basis of this Order and the Offer of Settlement submitted by Marek, the Commission finds1 that:
A. Stephen B. Marek controlled two free Internet newsletters, BigProfitNews and Bulls-Eye Stocks;
B. On ____________, 2000, in Securities and Exchange Commission v. Stephen B. Marek, et al., (Civil No. `00-600-PHX-EHC) (D. Ariz.), the United States District Court for the District of Arizona entered a final judgment permanently enjoining Respondent from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder; and
C. The Commission alleged in Securities and Exchange Commission v. Stephen B. Marek, et al., that from at least June 1999 through March 17, 2000, Respondent Marek falsely touted the stock of at least 25 microcap companies. The touts were made principally in e-mail messages disseminated by BigProfitNews and Bulls-Eye Stocks. The complaint also alleged that Marek made false or misleading statements concerning: (1) the purported "track records" of BigProfitNews' and Bulls-Eye Stocks' past selections; (2) his trading intentions with regard to some of the touted stocks; and (3) the compensation he received for his touting activities.
In view of the foregoing, it is in the public interest to impose the sanctions specified in the Offer of Settlement.
Accordingly, IT IS ORDERED THAT Marek be and hereby is barred from participating in any offering of penny stock.
By the Commission.
Jonathan G. Katz
|1||The findings herein are made pursuant to Stephen Marek's offer of settlement and are not binding on any other person or entity named as a respondent in this or any other proceeding.|
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