U.S. Securities & Exchange Commission
SEC Seal
Home Previous Page
U.S. Securities and Exchange Commission

Before the

Release No. 50362 / September 14, 2004

Admin. Proc. File No. 3-11649

In The Matter of Michael Yeninas

The Securities and Exchange Commission announced today that it has issued an Order Instituting Public Administrative Proceedings and Notice of Hearing Pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") (the "Order") against Michael Yeninas ("Yeninas" or the "Respondent").

In the Order, the Division of Enforcement alleged that the Commission filed a civil injunctive action on August 6, 2002 in connection with Yeninas' use of fraudulent practices to sell Ardian Finance Group, Inc. ("Ardian") securities. SEC v. Ardian Finance Group, et al., 02 Civ. 4366 (DGT) (E.D.N.Y.) ("Civil Action"). The Commission's complaint alleged that from October 2001 through at least June 2002, Ardian raised approximately $1.2 million from at least 70 investors in an unregistered offering of securities. Yeninas and others made material misrepresentations to induce individuals to invest in Ardian securities. Among other things, Yeninas told investors that (i) Ardian was planning an initial public offering ("IPO") on a date certain, and (ii) Ardian's stock would be sold in the IPO at a specific price (i.e. $6-7). In fact, Ardian had not taken any steps to conduct an IPO. The United States District Court for the Eastern District of New York entered a Preliminary Injunction By Consent preliminarily enjoining Yeninas from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 pending a final disposition of the Civil Action.

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide the Respondent an opportunity to dispute these allegations, and to determine what remedial sanction, if any, is appropriate in the public interest. Pursuant to the Commission's Rules of Practice, an initial decision shall be issued by the administrative law judge within 210 days from service of the Order.

See also the Order in this matter



Modified: 09/14/2004