UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16674 / August 31, 2000
Securities and Exchange Commission v. Stephen B. Marek and Dominic Roelandt, No.Civ. 00-600-PHX-EHC (U.S.D.C., D. Az.)
On August 29, 2000, Stephen B. Marek and Dominic Roelandt were enjoined, by consent and without admitting or denying the complaint's allegations, from violating the antifraud provisions of the Securities Exchange Act of 1934, Section 10(b) and Rule 10b-5 thereunder. Marek was ordered to pay disgorgement of $100,835 and a civil penalty of $100,835. Roelandt was ordered to pay disgorgement of $41,958 and a civil penalty of $41,958.
The Commission's complaint, filed April 4, 2000 charged that Roelandt, using an Internet newsletter named "Coldstocks," and Marek, using newsletters named "BigProfitNews" and "Bulls-Eye Stocks," touted the stocks of 35 microcap companies over the Internet. The complaint alleged that e-mail messages or websites contained various false and misleading statements concerning the claimed performance of Marek's and Roelandt's past stock picks, their trading intentions, and compensation received by Marek. U.S. District Judge Earl H. Carroll of the District Court in Phoenix, Arizona issued the order.
The Commission wishes to thank the British Columbia Securities Commission for its assistance in this matter.
See also, Litigation Release No. 16500 (April 4, 2000)