UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17677 / August 13, 2002
SECURITIES AND EXCHANGE COMMISSION v. TRADAMAX GROUP, INC., PATTINSON HAYTON, AND CONRAD DIAZ, Civ. No. 01-589-GLT (USDC CD Cal)
PERMANENT INJUNCTIONS ENTERED AGAINST TRADAMAX GROUP, INC. AND CONRAD DIAZ, THE PRINCIPAL EXECUTIVE OFFICER OF TRADAMAX
The Commission announced today that on August 9, 2002, the Honorable Gary L. Taylor, United States District Judge, entered final judgments of permanent injunction against Tradamax Group, Inc. and its principal executive and financial officer, Conrad Diaz. Tradamax formerly had an office in Newport Beach, California.
The final judgment enjoins Tradamax from violating Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a) and 13(b)(2)(A) of the Securities Exchange Act of 1934, and Exchange Act Rules 10b-5, 12b-20, 12b-25, 13a-1, 13a-11, and 13a-13. Diaz was enjoined from violating Section 10(b) of the Exchange Act, and Exchange Act Rule 10b-5, and from aiding and abetting or causing violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act, and Exchange Act Rules 12b-20, 12b-25, 13a-1, 13a-11, and 13a-13. Tradamax and Diaz consented to the entry of permanent injunctions against them. Tradamax was also ordered to pay disgorgement of $149,408 plus interest.
The Commission's complaint, filed in the U.S. District Court for the Central District of California on June 21, 2001, alleged that the defendants made numerous fraudulent public statements regarding: (1) the control of Tradamax by Pattinson Hayton, a recidivist securities law violator; (2) the identity of its chief executive officer; (3) the company's business, an Internet website portal designed to facilitate coffee bean and other commodities trading; (4) Tradamax's claimed business relationships; and (5) the company's projected revenues and income. According to the complaint, these fraudulent statements were made in press releases, Internet websites, Spam e-mail messages, Internet message boards, reports filed with the Commission, and promotional materials distributed to prospective investors.
The Commission's action against Pattinson Hayton is continuing.
For tips on how to avoid Internet "pump-and-dump" stock manipulation schemes, visit http://www.sec.gov/investor/online/pump.htm. For more information about Internet fraud, visit http://www.sec.gov/divisions/enforce/internetenforce.htm.
To report suspicious activity involving possible Internet fraud, visit http://www.sec.gov/complaint.shtml.