U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20437 / January 24, 2008
SEC v. Aimsi Technologies, Inc., et al., 05 CV 4724 (LLS) (S.D.N.Y.)
SEC Settles Securities Fraud Charges Against Aimsi Technologies, Inc. and Winfred Fields
The Commission announced today that it has settled its enforcement action, which involves charges of a deliberate "pump and dump" scheme to defraud investors in the stock of Aimsi Technologies, against Defendants Aimsi Technologies, Inc. and Winfred Fields. On January 15, 2008, the Honorable Louis L. Stanton of the U.S. District Court for the Southern District of New York entered final judgments on consent against Aimsi and Fields that enjoined them from violating Sections 17(a) of the Securities Act of 1933 and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and which also prohibit Fields from acting as an officer or director of a public company. The judgment against Aimsi requires it to pay disgorgement of $169,000 and prejudgment interest of $33,423.62, but payment was waived for the amount exceeding $50,525.51, and civil penalties were not imposed, based on Aimsi's defunct status. The judgment against Fields requires him to pay disgorgement of $350,000 and prejudgment interest of $63,572.13, but payment was waived for the amount exceeding $62,035, and civil penalties were not imposed, based on Fields' sworn representations of his financial condition. The Commission also announced that it has dismissed its claims against Relief Defendants China Global Distribution Corp., Wonderland Capital and BP International.
The Commission filed its action on an emergency basis on May 16, 2005, alleging that Aimsi, Fields and the other defendants engaged in a deliberate "pump and dump" scheme to defraud investors, in which Defendants acquired a substantial stake in the shares of Aimsi, orchestrated a fraudulent promotional campaign to drive up the price and trading volume of Aimsi's stock, and then sold their shares at a substantial profit to the investing public after their plan succeeded. The Complaint alleges that before the Commission suspended trading in Aimsi's stock on Dec. 15, 2004, the defendants earned illicit trading profits of at least $3.1 million. In connection with the Commission's filing of the Complaint, it also obtained a temporary restraining order that, among other things, froze defendants' assets. The Complaint charges 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. The Commission litigation is pending against the remaining defendants.