United States Securities and Exchange Commission
Securities Exchange Act of 1934
Release No. 47490 / March 12, 2003
Accounting and Auditing Enforcement
Release No. 1740 / March 12, 2003
File No. 3-11063
ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST PATTINSON HAYTON
The United States Securities and Exchange Commission (Commission) announced today that it has issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 (Exchange Act) against Pattinson Hayton (Hayton). The proceedings are based on the entry of a default judgment against Hayton on December 18, 2002 permanently enjoining him from violating, or aiding, abetting or causing violations of, Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b), 13(a), 13(b)(2), 13(d), and 16(a) of the Exchange Act and Rules 10b-5, 12b-20, 12b-25, 13a-1, 13a-11, 13a-13, 13d-1, 16a-2, and 16a-3 thereunder. (Securities and Exchange Commission v. Tradamax Group, Inc., Hayton, et al., Civil Action No. SA CV 01-589 GLT (C.D. Cal.).
The Commission's complaint alleged, among other things, that Hayton secretly controlled Tradamax Group, Inc., which formerly was a public company. Hayton disseminated false information to the public regarding the company's product (a purported online coffee bean trading system), Hayton's control of the company, the identity of the company's chief executive officer, the company's financial projections, and other material matters. The false statements and omissions were made in press releases, on Internet websites, in unsolicited e-mail messages, and in other promotional materials provided directly to investors, and in reports filed with the Commission.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Hayton an opportunity to dispute these allegations, and to determine whether a penny stock bar against him is appropriate and in the public interest.