UNITED STATES OF AMERICA
In the Matter of
GEORGE W. GUTTMAN,
ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 15(b)(6) OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS
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 George W. Guttman ("Guttman").
In anticipation of the institution of these administrative proceedings, Guttman 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 Guttman 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, Guttman consents to the issuance by the Commission of this Order Instituting Public Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order").
On the basis of this Order and Guttman's Offer, the Commission makes the following findings:
A. Guttman, age 43, resides in New York, New York. At all relevant times, Guttman held himself out as a financial and business consultant to micro-cap companies.
B. During 1998, Guttman participated in an unregistered offering of a common stock, which was a penny stock.
C. On September 26, 2001, the United States District Court for the Southern District of Texas entered a final judgment against Guttman in a civil injunctive action entitled Securities and Exchange Commission v. Donald John Christensen, II et al., Civil Action No. 01-3203, which, among other things, permanently enjoins Guttman from violating Sections 5(a) and 5(c) of the Securities Act of 1933 ("Securities Act") and orders him to pay disgorgement in the amount of $1,000,000.
D. The Commission's complaint in that action alleges, among other things, that in 1998 a principal of Mountain Energy issued millions of unregistered shares of the company's stock to Guttman and others, who immediately resold them in the market. The complaint further alleges that the transfer of the shares from Mountain Energy to Guttman and the subsequent resale of the shares in the market by Guttman violated Sections 5(a) and 5(c) of the Securities Act.
E. On August 18, 2001, without admitting or denying any of the allegations contained in the Commission's complaint, except as to jurisdiction and venue which he admitted, Guttman consented to the entry of the above final judgment permanently enjoining him from violations of Sections 5(a) and 5(c) of the Securities Act.
Based on the foregoing, the Commission deems it appropriate and in the public interest to accept Guttman's Offer and accordingly,
IT IS HEREBY ORDERED, pursuant to Section 15(b)(6) of the Exchange Act, that George W. Guttman 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, Guttman 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. Guttman's compliance with the Order;
2. Guttman's employment since the date of the Order;
3. the proposed nature of Guttman's participation in the offering of penny stocks; and
4. the identity of any broker, dealer, or issuer with whom Guttman 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.
Jonathan G. Katz
|Home | Previous Page||