SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release. No. 47222 / January 21, 2003
File No. 3-11012
PROCEEDINGS INSTITUTED AGAINST JAMES F. GLAZA
The Commission announced that it has instituted administrative and cease-and-desist proceedings against James F. Glaza ("Glaza") d/b/a Falcon Financial Services, Inc., a resident of Colorado Springs, Colorado. In the Order Instituting Public Administrative and Cease-And-Desist Proceedings and Notice of Hearing Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b) and 21C of the Securities Exchange Act of 1934 ("Order"), the Division of Enforcement ("Division") alleges, among other things, that from August 1999 through May 2000, Glaza offered to sell and sold to the public OnLine Power Supply, Inc. ("OnLine") common and preferred stock that was not registered with the Commission and for which no valid exemption from registration was available. The Division further alleges that Glaza made untrue statements to investors through oral statements, offering memoranda and promotional newsletters regarding: (a) compensation he was receiving from OnLine for the sale of OnLine stock; (b) Glaza's ability to purchase OnLine stock at lower prices than those paid by investors in contemporaneous transactions; and (c) OnLine's orders, financial condition, business relationships with third parties, stock price projections, and OnLine's anticipated listing on Nasdaq. Finally, Glaza made untrue statements regarding the risk associated with investments in OnLine stock and facts relating to a loan he made to OnLine, including the use of investor proceeds to repay the loan. As a result, the Division alleges that Glaza violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Division requests that Glaza pay disgorgement plus reasonable interest, pay civil penalties, and be barred from participating in any offering of penny stock.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Glaza an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and in the public interest.