United States Securities and Exchange Commission
ITIGATION RELEASE NO. 16549 \ May 12, 2000
Securities and Exchange Commission v. Sunpoint Securities, Inc. et al.
Civ. No. 6:99CV667 (EDTX/Tyler Division)
The Securities and Exchange Commission announced that on May 9, 2000, the Honorable Judge John Hannah, Jr. of the U.S. District Court for the Eastern District of Texas (Tyler Division) entered an Order of Permanent Injunction and Other Equitable Relief against Defendant Van R. Lewis III, ("Lewis"). Without admitting or denying the SEC's allegations, Lewis consented to the entry of a permanent injunction against future violations of the antifraud and other provisions of the federal securities laws. The Order requires Lewis to pay disgorgement and civil penalties as a result of the alleged activities in an amount to be determined by the parties, or, if necessary, by the Court. The Order also enjoins Lewis from violating Sections 17(a) and 17(e), and Rules 17a-3 and 17a-5 of the Securities Act of 1933, and Sections 10(b), 15(c)(1) and 15(c)(3) of the, and Rules 10b-5, 15c1-2, 15c3-1 and 15c3-3 Securities Exchange Act of 1934.
The Commission's Complaint, filed on November 19, 1999, alleges that Lewis, founder and president of Sunpoint Securities, Inc. ("Sunpoint"), along with Sunpoint's chief financial officer, Mary Ellen Wilder ("Wilder"), engaged in a fraudulent scheme by diverting customer funds for unauthorized and undisclosed purposes. The Complaint further alleges that, as a result of the actions of Lewis and Wilder, Sunpoint customers lost approximately $25 million.
See also L.R. 16545 (May 8, 2000); and L.R. 16366 (November 19, 1999)