U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20248 / August 21, 2007
SEC v. 2DoTrade, Inc. et al., Civ. No. 03-CV-2246 (N. D. Tex.)
On June 4, 2007, Judge David Godbey of the U.S. District Court for the Northern District of Texas ordered Defendants George R. Taylor and Dominic Roelandt to disgorge $25,000 and $449,000, respectively, and pay a civil penalty of $120,000 each. In its Complaint, the Commission alleged that Taylor, Roelandt and others had engaged in a fraudulent "pump and dump" scheme designed to manipulate the stock price of 2DoTrade, Inc. Previously, the Court enjoined Taylor from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and aiding and abetting violations of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-11 thereunder. Roelandt was enjoined from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act, Sections 10(b), 13(d) and 16(a) of the Exchange Act and Rules 10b-5, 13d-1, 16a-2 and 16a-3 thereunder. Taylor and Roelandt were also barred from participating in an offering of penny stock and from serving as an officer or director of any publicly traded company.
Upon motion by the Commission, the Court dismissed the pending claims against Clinton Walker, who was previously acquitted in a related criminal proceeding involving the sale of 2DoTrade securities.