SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17093 \ August 8, 2001
SEC SETTLES CHARGES AGAINST CHRISTOPHER WOLF FOR FRAUD INVOLVING SALES OF AUXER STOCK
The Securities and Exchange Commission announced that on July 17, 2001 the United States District Court for the Eastern District of New York entered a Final Judgment of Disgorgement as to Christopher Wolf, which provided that the Commission's claim for disgorgement against Wolf is satisfied by the $20 million in restitution ordered in a related criminal proceeding, United States v. Christopher Wolf, 99 CR 139 (E.D.N.Y.) (NG). The Final Judgment of Disgorgement did not impose a civil penalty, based upon Wolf's demonstrated inability to pay.
Previously, on March 28, 1999, the Court entered a Partial Judgment by Default against Wolf which enjoined him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In the related criminal proceeding, Wolf was convicted on one count of securities fraud, five counts of conspiracy to commit securities fraud, and two counts of conspiracy to commit money laundering, and sentenced to serve a term of incarceration of 10 years and 8 months and to pay $20 million in restitution.
The Commission's complaint, filed on June 16, 1999, alleged that Wolf orchestrated the fraudulent sale of stock in Auxer Industries, Inc., from a New York City branch office of Vision Investment Group, Inc., a now defunct, registered broker-dealer. The complaint alleged that from approximately July through December 1995, Wolf, who owned and operated the New York City branch office even though he was never registered with Vision in any capacity, and other salespeople under his direction, defrauded customers of Vision in connection with their purchase of stock in Auxer by making material misrepresentations to customers about Auxer and its future prospects and through baseless predictions about its stock price, and by purchasing Auxer stock for customer accounts without authorization. Wolf and others also failed to disclose that they received cash compensation for selling Auxer stock and that customer orders were being filled with Wolf's stock held in Vision accounts.
See also: LR-16189 (June 16, 1999)