U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20919 / March 2, 2009
SEC v. Nathan A. Chapman, et al., Civil Action No. 03-1877-WDQ (D. Md.)
FINAL JUDGMENT ENTERED AGAINST DEMETRIUS B. BROWN
The Securities and Exchange Commission ("Commission") announced that on February 10, 2009, the Honorable William D. Quarles, Jr. of the United States District Court for the District of Maryland, entered a Final Judgment that permanently enjoins Demetrius B. Brown from future violations of Section 13(a) of the Securities Exchange Act of 1934, and Rules 13a-1, 13a-13, and 12b-20 thereunder; and orders Brown to pay a civil penalty in the amount of $15,000. Brown consented to the entry of the Final Judgment without admitting or denying the Commission's allegations.
The Commission's complaint in this matter, filed on June 26, 2003, alleged a fraudulent scheme conducted by defendant Nathan A. Chapman, Jr. and others in connection with the June 2000 initial public offering of, and subsequent secondary market trading in, the common stock of eChapman, Inc. With respect to Brown, who at relevant times was the former Chief Executive Officer, Treasurer and Assistant Secretary of eChapman, Inc., the complaint alleged that he caused eChapman to misrepresent the use of proceeds of its initial public offering in filings with the Commission.
The civil action continues against defendants Earl Bravo, Nathan Chapman, and Chapman Capital Management, Inc.