UNITED STATES OF AMERICA
SECURITIES EXCHANGE ACT OF 1934
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act") be, and they hereby are, instituted against Sean T. Healey ("Healey").
In anticipation of the institution of these administrative proceedings, Healey has submitted an Offer of Settlement ("Offer"), 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 in which the Commission is a party, and without admitting or denying the findings herein, except that Healey admits the entry of the injunction set forth in paragraph III.C and the jurisdiction of the Commission over him and over the subject matter of this proceeding, Healey consents to the issuance by the Commission of this Order Instituting Public Administrative Proceedings Pursuant to Section 15(b)(6) of the Exchange Act, Making Findings and Imposing Remedial Sanctions ("Order").
On the basis of this Order and Healey's Offer, the Commission makes the following findings:
A. Healey, age 44, resides in Foxboro, Massachusetts. Healey claims to be an investment banker.
B. During 1998, Healey participated in an offering of a common stock, which was a penny stock.
C. On March 26, 2000, the United States District Court for the Southern District of Florida issued an order in the Commission's civil injunctive action against Healey [Securities and Exchange Commission v. Rajiv Vohra, et. al., Civil Action No. 00-7286-CIV-SEITZ, (S.D. Fla.)] that, inter alia, permanently enjoins Healey from violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder and orders him to pay disgorgement in the amount of $66,821 plus $12,358 in prejudgment interest and a civil penalty in the amount of $66,821.
D. The Commission's complaint in that action alleged that in 1998 Healey engaged with others in a scheme to promote the securities of New Directions Manufacturing, Inc. ("New Directions"), a small, furniture-manufacturing company, by publishing false and misleading information in the form of a research report over the Internet. The complaint further alleged that Healey participated with others to manipulate the price of New Directions stock through "wash sales."
E. On September 19, 2000, without admitting or denying any of the allegations contained in the Commission's complaint, except as to jurisdiction and venue which he admitted, Healey consented to the entry of the above Order of permanent injunction permanently enjoining him from violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept Healey's Offer and accordingly,
IT IS HEREBY ORDERED, pursuant to Section 15(b)(6) of the Exchange Act, that Sean T. Healey be, and hereby is, barred from participating in an offering of a penny stock, including: acting as a promoter, finder, consultant, agent, or other person who engages in activities with a broker, dealer, or issuer for purposes of the issuance or trading in any penny stock; or inducing or attempting to induce the purchase or sale of any penny stock.
After five years from the date of the Order, Healey may request consent to participate in offerings of penny stock by submitting an application to the Commission, through the Office of the Secretary. Such an application shall address the following factors:
1. Healey's compliance with the Order;
2. Healey's employment since the date of the Order;
3. the proposed nature of Healey's participation in the offering of penny stocks; and
4. the identity of any broker, dealer, or issuer with whom Healey will be engaged in activities for purposes of the issuance or trading of any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.
By the Commission.