United States Securities and Exchange Commission
Securities Exchange Act of 1934
Release No. 46420 / August 27, 2002
Administrative Proceeding File No. 3-10871
Commission Institutes Administrative Proceedings Against Ives Health Company, Inc.
On August 27, 2002, the Commission instituted an administrative proceeding against Ives Health Co., an Oklahoma company that has not filed any required reports with the Commission since its quarter ended September 30, 2000. The Order Instituting Proceedings alleges that Ives Health Co. has not filed annual reports on Form 10-K for its years ended December 31, 2000 and 2001, nor quarterly reports on Form-Q for five quarters. Previously, the Commission suspended trading in Ives Health common stock for ten days, beginning on March 5, 2002. In July 2002, the Commission named Ives Health in a civil injunctive action alleging a fraudulent pump-and-dump scheme involving a purported HIV treatment. Ives Health defaulted in that action and has been permanently enjoined from violating the anti-fraud and registration provisions of the securities laws. The company was criminally indicted by a grand jury in the Southern District of New York on charges similar to those in the SEC civil injunctive action and remains a defendant in the criminal action.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Ives Health an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and for the protection of investors.