SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17048 / June 22, 2001
Federal Court in Louisiana Enjoins Nolan W. Wade From Securities Violations and Rules That Charles E. Campbell Did Not Violate the Federal Securities Laws
SEC v. Nolan W. Wade, individually and d/b/a Capital Financial Consultants, and Charles E. Campbell, Civil Action No. 98-1857-S (W.D. La.)
On February 2, 2000, Nolan W. Wade ("Wade"), a resident of Moselle, Mississippi, was permanently enjoined by the United States District Court in Shreveport, Louisiana from violating the registration and anti-fraud provisions of the federal securities laws. Wade consented to the entry of the order. Wade was enjoined from violating Section 17(a) of the Securities Act and Sections 10(b) and 15(a) of the Securities Exchange Act, and Rule 10b-5. Wade was subsequently ordered to disgorge $600,000, but payment was waived and penalties not imposed based upon his demonstrated financial inability to pay.
On August 8, 2000, after a non-jury trial, the same Court ruled that Chares E. Campbell ("Campbell"), a resident of Flossmoor, Illinois, did not violate the antifraud provisions of the federal securities laws in connection with his efforts to take EarthNet Companies, Inc. and Mississippi Motorplex, Inc. public through a proposed "reverse acquisition" involving International Equity Resources, Inc.
In September 1998, the Commission filed a civil injunctive action seeking permanent injunctions and other relief against Wade, individually and doing business as Capital Financial Consultants, and Campbell. Among other things, defendants were alleged to have defrauded investors by misrepresenting the process known as a "reverse acquisition," in which a company can become publicly traded, and misusing the proceeds of several offerings.
See also Litigation Release No. 15923.http://www.sec.gov/litigation/litreleases/lr17048.htm