UNITED STATES OF AMERICA
In the Matter of
ORDER MAKING FINDINGS AND IMPOSING REMEDIAL SANCTION BY DEFAULT
Respondent Ives Health Company, Inc. (Ives Health) is in default under Rule 155(a) of the Securities and Exchange Commission's (Commission) Rules of Practice, 17 C.F.R. § 201.155(a), because it has failed to file an answer and has failed to file a response to my Order to Show Cause issued November 26, 2002. Furthermore, at a prehearing conference held on January 24, 2003, Ives Health stated that it has no assets and will not object to the entry of a default judgment.
On January 28, 2003, the Division filed a Motion For Order Making Findings and Imposing Sanction By Default (Motion) for Ives Health's failure to file an answer to the Order Instituting Proceedings (OIP) by October 7, 2002, in accordance with Rule 220(f) of the Commission's Rules of Practice, 17 C.F.R. § 201.220(f). The Motion, filed pursuant to Rule 155(a) of the Commission's Rules of Practice, 17 C.F.R. § 201.155(a), seeks an order revoking the registration of Ives Health's common stock, pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act).
Accordingly, I find the allegations in the OIP, dated August 27, 2002, are true:
A. Ives Health is an Oklahoma corporation whose common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act.
B. Beginning on April 6, 2000, Ives Health was required, pursuant to Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder, to file timely and in proper form, Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Ives Health has failed to file the following required reports:
2. Form 10-Q for its quarter ended March 31, 2001;
3. Form 10-Q for its year ended June 30, 2001;
4. Form 10-Q for its quarter ended September 30, 2001;
5. Form 10-K for its year ended December 31, 2001;
6. Form 10-Q for its quarter ended March 31, 2002; and
7. Form 10-Q for its quarter ended June 30, 2002;
As a result of the foregoing, Ives Health failed to comply with Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.
C. Ives Health stock was quoted in the pink sheets beginning in July 1999 and became eligible for trading on the Over the Counter Bulletin Board following the filing of a Form 211 with the National Association of Securities Dealers, Inc., in May 2000. Following the Commission's 10-day trading suspension of Ives Health stock in March 2001, the stock has traded over the counter, with sales reported in the pink sheets.
D. On March 20, 2002, Ives Health was permanently enjoined by the U.S. District Court for the Southern District of New York in SEC v. Ives Health Co. Inc., M. Keith Ives, Michael Harrison and James Kosta, 01-CV-6999(GEL)(SDNY), from violating Sections 5(a) and (c) and 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(a) of the Exchange Act and Rules 10b-5, 12b-20, 12b-25, 13a-1 and 13a-13.
ACCORDINGLY, IT IS ORDERED, pursuant to Section 12(j) Exchange Act, that the registration of Ives Health Company, Inc.'s common stock is hereby revoked.
Robert G. Mahony
Administrative Law Judge
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