SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20492 / March 13, 2008
COURT RULING IN COMMISSION SUIT CAUSES DEFENDANT TO PAY $100,000 PENALTY ASSESSED IN COMMISSION ADMINISTRATIVE PROCEEDING
Securities and Exchange Commission v. Anne P. Hovis, Case No. 1:07-MC-00495 (District of Columbia)
The Securities and Exchange Commission announced that on November 16, 2007, it filed an Application for a Court Order Directing Anne P. Hovis to Comply with an Order issued by the Commission in In the Matter of Phlo Corporation, James B. Hovis and Anne P. Hovis, A.P. File No. 3-11909, Securities Exchange Act of 1934 Release No. 55562 (March 30, 2007) (the “Commission Order”). The Commission Order required Hovis to pay a $100,000 penalty based on violations of securities laws related to Hovis’ role running the transfer agent activities of Phlo Corp., an issuer serving as its own transfer agent. Under Hovis’ direction, Phlo failed to comply with the requirements for processing transfer requests and properly responding to inspections by the Commission’s Office of Compliance Inspections and Examinations. When Hovis failed to pay the assessed penalty, the Commission filed an Application in the District Court for the District of Columbia seeking to compel Hovis to comply with the Commission Order by paying the penalty.
On November 28, 2007, in response to the Commission’s Application, United States District Court Judge Henry H. Kennedy entered an order to show cause against Hovis and set a hearing. Hovis then made two $50,000 payments to the Commission to fulfill her penalty obligation.