UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT
Release No. 47343 / February 11, 2003
File No. 3-11041
ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST RAYLEN PARRA
The United States Securities and Exchange Commission (Commission) announced today that it has entered an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act) against Raylen Parra (Parra) of Orlando, Florida, based on the entry of a Default Judgment of Permanent Injunction entered against her on September 13, 2002, permanently enjoining her from further violations of Sections 17(a) and 17(b) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
The Order alleges that Parra was the president and chief executive officer of Norrstar Advertising, Inc., a now defunct broker relations firm formerly located in Daytona Beach, Florida. The Order also alleges that during the period from approximately September 1998 to September 1999, Norrstar's staff of "broker relations executives" at the direction of Parra, disseminated false and misleading information to the investment community concerning the stock of at least five public companies quoted on the Over-the-Counter Bulletin Board. The Order further alleges, among other things, that while touting the stock of the public companies, Norrstar's principals, including Parra, reaped illegal profits of more than $3.4 million by engaging in the practice of "scalping" -- selling the stock of public companies they were simultaneously recommending to others to purchase.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Parra an opportunity to dispute these allegations, and to determine what remedial sanctions if any, are appropriate and in the public interest.