SECURITIES EXCHANGE ACT OF 1934
Release No. 44821 / September 20, 2001
ADMINISTRATIVE PROCEEDING
File No. 3-10581
ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST MICHAEL A. FURR
The Commission instituted administrative proceedings pursuant to 15(b)(6) of the Securities Exchange Act of 1934 against Michael Furr of Trabuco Canyon, California.
The Division of Enforcement has alleged that Furr engaged in public and investor relations through entities he created, owned, and controlled, including Wall Street Research Group, Inc., and Wall Street Financial Group, Inc. and that Furr touted penny stocks on his free website, in printed research reports, and through emails. The Division alleged that, for several of the stocks, Furr included false financial projections and made misrepresentations about the issuers' business ventures and assets, that Furr engaged in a fraudulent pattern of trading in some of the stocks, that Furr sold stock in the recommended securities without adequately disclosing his intention to sell, and that Furr either failed to disclose or misrepresented the compensation he received for touting the securities he recommended. On May 9, 2001, a final judgment was entered by the United States District Court for the Central District of California, in Securities and Exchange Commission v. Michael A. Furr (C.A. No. SACV00-880 DOC(Eex)), a civil action based upon the above conduct. Furr consented to the order which enjoined him from violating Section 17(b) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Furr was also ordered to pay disgorgement in the amount of $3,452,522, pre-judgment interest in the amount of $311,750 and a civil penalty in the amount of $110,000. The Division seeks an order barring Furr from participating in any offering of a penny stock, including: (i) 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 (ii) inducing or attempting to induce the purchase or sale of any penny stock.