U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20894 / February 10, 2009
Securities and Exchange Commission v. Marc T. Duchesne, Jeffrey A. Hayden, Gregory A. Moffit, Robert S. Parsley, and Nationwide Capital Corp., Civil Action No. 1:07-CV-1475 (JDB) (D.D.C., filed Aug. 16, 2007)
Court Enters Permanent Injunction, Officer and Director Bar, and Penny Stock Bar Against Marc T. Duchesne in Market Manipulation Case
The Securities and Exchange Commission today announced that, on February 3, 2009, the Honorable John D. Bates of the United States District Court for the District of Columbia entered a final judgment of permanent injunction and other relief, including a permanent officer and director bar and a permanent bar against participating in offerings of penny stocks, against Marc T. Duchesne. The final judgment was entered by default after Duchesne failed to answer in the civil action that was filed by the Commission against Duchesne and others on August 16, 2007.
The Commission's complaint alleged that, in August and September 2002, Duchesne and others carried out a scheme to manipulate the stock price of Nationwide Capital Corporation, a now-defunct company whose shares traded on the Over-the-Counter Bulletin Board. The scheme began with a matched trade between Duchesne and Jeffery Hayden that artificially inflated Nationwide's stock price from pennies to $9.35 per share. The complaint further alleged that, thereafter, Duchesne, Hayden and others bought or sold Nationwide shares at inflated prices to increase the price of Nationwide stock, to generate volume, and to stimulate market demand for the manipulated shares. In addition, Duchesne and others disseminated false and misleading financial information and business prospects to further the scheme. The scheme collapsed on October 1, 2002, when the Commission suspended trading in Nationwide securities.
The Final Judgment (i) permanently enjoins Duchesne from violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5, and aiding and abetting violations of Section 15(d) of the Exchange Act; (ii) permanently bars him from serving as an officer or director; (iii) permanently bars him from participating in any future offerings of penny stocks, and (iv) orders him to pay disgorgement of $664,995, together with prejudgment interest of $302,106.
The Commission acknowledges the assistance of the Unites States Attorney's Office for the District of Columbia and the Federal Bureau of Investigation, which conducted a separate, parallel criminal investigation.
For additional information, please see Litigation Release No. 20246 (Aug. 16, 2007); Litigation Release No. 20570 (May 13, 2008).