U.S. Securities and Exchange Commission
LITIGATION RELEASE NO. 20944 / March 11, 2009
SEC v. Peter W. Fisher, et al., Civil Action No. 07-cv-12552 GER PJK (E.D. Mich. filed June 14, 2007)
SEC v. Phillip W. Offill, Jr., et al., Civil Action No. 07-cv-1643-D (N.D. Tex. filed Sept. 26, 2007)
SEC v. David B. Stocker, et al., Civil Action No. CIV-08-1475-PHX-FJM (D. Ariz. filed Aug. 11, 2008)
ATTORNEY PLEADS GUILTY TO CONSPIRACY TO VIOLATE SECURITIES LAWS
The Department of Justice announced today that it filed criminal charges against Arizona securities lawyer David B. Stocker in the United States District Court for the Eastern District of Virginia. The Department of Justice charged Stocker with one count of conspiracy to commit securities fraud involving 19 publicly-traded companies. According to the Department of Justice’s announcement, Stocker participated in a “pump-and-dump” scheme to issue shares to the public illegally and to manipulate the trading price and volume by making materially false and misleading statements in press releases and in spam e-mail messages. Stocker simultaneously entered a guilty plea, agreeing to pay restitution to investors and forfeit the proceeds of his crimes. Stocker is currently scheduled to be sentenced on November 6, 2009.
The Securities and Exchange Commission earlier named Stocker in three civil injunctive actions currently pending in federal district courts in Arizona, Michigan, and Texas. In the actions, described below, the Commission alleged that Stocker violated the antifraud and registration provisions of the securities laws:
The Commission seeks to enjoin Stocker from future violations of the securities laws, disgorgement of Stocker’s ill-gotten gains with pre-judgment interest, civil penalties, and to bar Stocker from participating in future offerings of penny stock.