U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21050 / May 19, 2009
SEC v. David B. Stocker., et al., Civil Action No. CIV-08-1475-PHX-FJM (D. Az. filed Aug. 12, 2008)
Arizona Attorney Enjoined From Fraud in Corporate Hijacking Case
The United States Securities and Exchange Commission (Commission) announced that on May 12, the Honorable Frederick J. Martone of the United States District Court for the District of Arizona, entered an order permanently enjoining David B. Stocker, an Arizona attorney, and Carrera Capital, Inc., a corporation that he controlled, from engaging in fraud in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 and Section 17(a)(1) of the Securities Act of 1933, and from offering or selling securities in violation of Section 5(a) and (c) of the Securities Act of 1933. In its complaint, the Commission alleged that during 2006, Stocker and Carrera Capital through false and misleading statements acquired control of the securities of seven corporations that had previously been publically traded and then sold the shares in transactions when no registration statements had been filed with the Commission disclosing to public investors accurate information about the business operations and finances of each company. The seven companies were Avalon Stores, Inc. (AVNS), Westmark Group Holdings, Inc. (WGHI), Electronic Transmissions Corp. (ETSM), Accel International Corp. (ACLE), Access Developers, Inc. (AONE), Chemtrack Inc. (CMTR), and Computer Communications, Inc. (CCMM). Stocker and Carrera Capital consented to entry of the injunctions without admitting or denying the allegations. Stocker and Carrera Capital were also barred from participating in the sale of penny stocks, and held liable jointly and severally for disgorgement of $592,802 and prejudgment interest of $87,802, which will be satisfied by entry of a restitution order in the related criminal case against Stocker, U.S. v. David B. Stocker, case no. 1:09CR118 (E.D. Va. filed March 11, 2009). Stocker has also consented to resolve two other civil injunctive actions pending in federal district courts in Michigan and Texas.
[SEC v. Stocker, et al., No. CIV-08-1475-PHX-FJM (D. Ariz.)] (LR 20681, Aug. 12, 2008); [SEC v. Fisher, et al., No. 07-cv-12552 (E.D. Mich.)] (LR 20154, (June 14, 2007); [SEC v. Offill, et al., No. 07-cv-1643 (N.D. Tex.)] (LR 20302, Sept. 27, 2007); [U.S. v. Stocker, No. 1:09CR118 (E.D. Va.)] (LR 20944, Mar. 11, 2009)
Contact Persons: Donald M. Hoerl