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U.S. Securities and Exchange Commission


Litigation Release No. 17453 / April 2, 2002


On April 1, 2002, the Securities and Exchange Commission filed an application with the United States District Court for the Central District of California for an order to enforce an investigative subpoena served on Rubina Khan. Rubina Khan is the wife of Rafi Khan, who was a defendant in a prior Commission enforcement action. The subpoena sought testimony from Rubina Khan regarding, among other things, transactions in a bank account and brokerage account in her name.

The Commission's application alleges that the information sought from Rubina Khan is directly relevant to a new Commission investigation involving whether Rafi Khan has violated the terms of a prior injunction or Commission bar order, and whether Rafi Khan and others have violated, or are about to violate, certain registration, disclosure, and antifraud provisions of the federal securities laws. The Commission is investigating, among other things, whether Rafi Khan, in performing various services for four public companies, has acted as an unregistered broker or dealer or engaged in fraud in connection with writing and disseminating promotional buy recommendations on each company. The Commission is also investigating whether Rafi Khan may be using a brokerage account held in the name of his wife, Rubina Khan, to conceal his activities.

In April 2000, Rafi Khan consented to the entry of a federal district court order permanently enjoining him from violating certain antifraud provisions of the federal securities laws relating to allegations of market manipulation. The Commission alleged, among other things, that Khan manipulated the stock price of two companies using a variety of manipulative practices. In May 2000, Rafi Khan consented to a Commission order barring him from associating with any broker or dealer, with the right to reapply after five years.

The Commission's application alleges that Rubina Khan has failed to comply with a subpoena legally issued by the Commission, and that she has no valid justification for failing to comply. A hearing on the Commission's application has not yet been scheduled.


Modified: 04/02/2002