U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19669 / April 26, 2006
SEC v. Dean J. Sheptycki, Misc. No. 06-MS-00074 (D.D.C. February 17, 2006)
Court Enforces Third Commission Subpoena in Fax Blasting Investigation
On April 18, 2006, the United States District Court for the District of Columbia entered a stipulated Order requiring obedience to the Commission's subpoena issued to respondent Dean J. Sheptycki. This Order resolved a subpoena enforcement action filed by the Commission. In briefing, Sheptycki argued to the Court that the Commission had no jurisdiction over him because he was a resident of Nassau, Bahamas. After the Commission produced evidence to the contrary, Sheptycki agreed to the entry of a stipulated Order requiring his compliance with the Commission's Subpoena. In its Application and supporting papers, the Commission explained that the subpoena concerned the Commission's investigation into the production and/or mass dissemination of faxes touting the securities of two thinly traded American companies National Storm Management, Inc. (NLST) and Deep Rock Oil and Gas, Inc. (DPRK) in an apparent attempt to capitalize on the devastation suffered by the Gulf region in the wake of Hurricane Katrina.
This is the third subpoena enforcement proceeding arising out of this investigation. On December 15, 2005, the Commission filed an application to enforce subpoenas issued to Gary W. Zinn; Tanika Consulting Group, Inc.; and Dynamic Marketing Solutions. See Litigation Release No. 19498 (December 19, 2005). On April 8, 2005, the Commission filed an application to enforce subpoenas issued to J. Shrewder. See Litigation Release No. 19180 (April 12, 2005). In both matters, the Court enforced the subpoenas by issuing stipulated Orders.
On December 23, 2004, the Commission issued an Order suspending trading in ArTec, Inc. common stock for a period of ten days. See Securities Exchange Act of 1934 Release No. 50923 (December 23, 2004).
The Commission has issued an Investor Alert concerning investment related faxes. This alert is available on the Commission's website at the following location: http://www.sec.gov/investor/pubs/junkfax.htm.