SECURITIES EXCHANGE ACT OF 1934
Rel. No. 48850 November 26, 2003
Admin. Proc. File No. 3-11247
In the Matter of STEVEN WISE and VLADLEN "LARRY" VINDMAN |
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ORDER GRANTING MOTION TO AMEND ORDER INSTITUTING PROCEEDINGS |
On September 5, 2003, the Commission issued an Order Instituting Proceedings ("OIP") against Larry Vindman and another individual, alleging that they willfully violated, and committed or caused violations of, Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The OIP sought penny stock bars, civil penalties, and cease-and-desist orders, among other sanctions, against them.
The Division of Enforcement now seeks to amend the OIP. The OIP identified Vindman as "Larry Vindman" and stated that he was 24 years old. The Division requests that we correct the OIP to identify Vindman as "Vladlen 'Larry' Vindman" and to state his age as 32 years.1 Vindman has not responded.
In its motion, the Division represents that, at the time the OIP was issued, Respondents were arrested by federal agents in response to a criminal complaint filed in the United States District Court for the Eastern District of New York. The criminal complaint charged Respondents with conspiracy to commit fraud based on the same conduct set forth in the OIP.2
Following Respondents' arrest, the United States Attorney's Office informed the Division that Vindman identified himself as "Vladlen Vindman," gave his age as 32 years, and acknowledged that he used "Larry," his younger brother's first name, as an alias. The United States Attorney's Office also informed the Division that it confirmed through Vindman's criminal counsel that Vindman's real name is "Vladlen," and that he was born on June 7, 1971, which made Vindman 32 years old. Vindman has a 24 year-old younger brother named "Larry" who lives with him. The Division asserts that, because it is conceivable that the OIP intended for Vindman was received by his younger brother, the errors regarding Vindman's name and age should be corrected so that he receives appropriate notice of the OIP.3
Rule of Practice 200(d)(1) provides that the Commission "may, at any time, amend an order instituting proceedings to include new matters of fact or law."4 The Commission has stated that such amendments should be "freely granted, subject only to the consideration that other parties should not be surprised, nor their rights prejudiced."5 Comment (d) to this Rule makes it clear that, where an amendment is intended to correct an error and is within the scope of the original order, the Commission has authority to amend the OIP.
In this case, the amendment seeks to correct errors in the OIP: Vindman's real first name is "Vladlen," not Larry, and his current age is 32 years, not 24 years. Amending the OIP will not result in surprise or prejudice to other parties, particularly since the proceeding has been stayed and no hearing has been set. Under these circumstances, we believe that it is appropriate to grant the Division's motion.
Accordingly, IT IS ORDERED that the Division of Enforcement's motion to amend the order instituting proceedings to correct identifying information be, and it hereby is, granted.
By the Commission.
Jonathan G. Katz
Secretary