U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 47192 / January 15, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11011


In the Matter of

JOHN W. DUFFELL III,

Respondent.


:
:
:
:
:
:
:

ORDER INSTITUTING
ADMINISTRATIVE PROCEEDINGS
PURSUANT TO SECTION 15(b)
OF THE SECURITIES EXCHANGE ACT
OF 1934 MAKING FINDINGS, AND
IMPOSING REMEDIAL SANCTIONS

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") against John W. Duffell III ("Duffell" or "Respondent").

II.

In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "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 to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.4 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.

III.

On the basis of this Order and Respondent's Offer, the Commission finds that:

1. Duffell, age 53, is an American citizen and resides in Annecy, France. Duffell promoted JDMC Global Corp. "JDMC" from approximately June through September 1996.1

2. JDMC was incorporated in Colorado in 1925. From approximately 1994 through 1997, JDMC had its principal place of business in Los Angeles, California and was engaged in a variety of businesses, including mining, construction, and entertainment. JDMC's stock traded publicly and was quoted on the OTC Bulletin Board until the Commission suspended it from trading on September 16, 1996. No registration statement has ever been filed with the Commission or been in effect with respect to any offer or sale of JDMC securities.

3. Duffell participated in an offering of JDMC stock, which is a penny stock within the meaning of Sections 15(b) (6) and 3(a) (51) of the Exchange Act and Rule 3a51-1 thereunder.

4. On December 10, 2002, a final judgment was entered by consent against Duffell, permanently enjoining him from future violations of Sections 5"), 5(c), and 17") of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Robert N. Rooks, John W. Duffell III, and Charles E. Yost II, Civil Action Number EDCV 01-846 VAP (SGLx), in the United States District Court for the Central District of California, Eastern Division.

5. The Commission's complaint in the civil action alleged that, in connection with the offer and sale of JDMC securities, from June through September 1996, Duffell provided false and misleading information regarding JDMC to a retail brokerage firm and a public relations firm, both of which were recommending the purchase of JDMC stock to investors. The complaint also alleged that, from June through September 1996, Duffell offered and sold JDMC securities to investors.

IV.

In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent Duffell's Offer.

ACCORDINGLY, IT IS HEREBY ORDERED that Respondent be, and hereby is, barred from participating in any 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.

For the Commission, by its Secretary, pursuant to delegated authority.

Jonathan G. Katz
Secretary

Footnotes

1 In a prior Commission enforcement action arising out of a limited partnership offering, Duffell was enjoined from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. SEC v. John Duffell, III, et al. Civil Action No. 78-4811 (C.D. Cal. March 22, 1978). Duffell was also convicted and sentenced to prison for the same conduct related to the Commission's 1978 action. United States v. John W. Duffell, III, Case No. CR-81-01075-01 (C.D. Cal. 1981).

 

http://www.sec.gov/litigation/admin/34-47192.htm


Modified: 01/16/2003