United States Securities and Exchange Commission
Litigation Release No. 17512 \ May 9, 2002
United States v. Steven M. Bolla, Case No. 02-196 (D.C.D.C.)(TPJ)
STEVEN M. BOLLA PLEADS GUILTY TO MAKING
On May 9, 2002, the United States Attorney's Office for the District of Columbia announced that Steven M. Bolla, the former president of Security Financial, Inc., an investment advisory firm, pleaded guilty to making false statements to the Securities and Exchange Commission in connection with a settlement of SEC v. James L. Foster, Laurie F. Foster, Steven M. Bolla and William E. Busacker, Jr., Civil Action No. 1:00CV01192 (D.C.D.C.), in violation of 18 United States Code Section 1001. Bolla is charged with falsely reporting his income and assets in two sworn statements filed with the Commission, on November 5, 1999 and February 5, 2000. Bolla faces a maximum sentence of 5 years imprisonment and a $250,000 fine.
On May 30, 2000, the Commission filed a civil injunctive action against Bolla (and three codefendants) in the United States District Court for the District of Columbia charging him with violations of the antifraud provisions of the federal securities laws. Without admitting or denying the allegations in the Commission's complaint, Bolla agreed to the entry of an Order permanently enjoining him from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 204 and 206(1), (2) and (4) of the Investment Advisers Act of 1940 and Rules 204-2(a)(3), 204-2(c)(1) and (2), and 206(4)-2(a)(1) through (5) thereunder. Bolla also consented to being permanently enjoined from violating Rule 206(4)-1(a)(5) under Section 206(4) of the Investment Advisers Act of 1940. SEC v. James L. Foster, Laurie F. Foster, Steven M. Bolla and William E. Busacker, Jr., Litigation Release No. 16567 (May 30, 2000). On June 19, 2000, the Court entered the Order permanently enjoining Bolla from violating the provisions described. In addition, Bolla was ordered to pay a penalty of $10,000, with the Court specifically noting that Bolla was not directed to pay additional amounts as a civil penalty based on Bolla's demonstrated inability to pay, as shown by sworn financial statements furnished to the SEC. SEC v. James L. Foster, Laurie F. Foster, Steven M. Bolla and William E. Busacker, Jr., Civil Action No. 1:00CV01192 (D.C.D.C.).
The Commission commends the United States Attorney's Office for the District of Columbia and the Federal Bureau of Investigation for their efforts in investigating and prosecuting the case.