U.S. Securities and Exchange Commission
Litigation Release No. 18006 / February 27, 2003
JUDGMENT OF PERMANENT INJUNCTION AND ORDER IMPOSING A PENNY STOCK BAR ENTERED AGAINST DEFENDANT INVOLVED IN A PUMP AND DUMP SCHEME
SECURITIES AND EXCHANGE COMMISSION V. JEFFREY R. SENGER, BRAD M. NIRENBERG AND NORMAN F. PIATTI, CASE NO. 02-80766-CIV-HURLEY/LYNCH (S.D. FLA.)
The Securities and Exchange Commission (SEC) announced that the Honorable Daniel T. K. Hurley, United States District Judge for the Southern District of Florida, entered a Judgment of Permanent Injunction and Other Relief (Judgment) against Norman Piatti (Piatti) on October 4, 2002. The Judgment, entered by Piatti's consent without admitting or denying the allegations of the SEC's Complaint, enjoins him from violating Sections 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Judgment further provided for the imposition of a civil money penalty in an amount to be determined by the Court upon the SEC's motion. On February 15, 2003, the Court entered, with Piatti's consent, an Order Concerning Civil Penalty and Imposing a Penny Stock Bar Against Piatti. The Court did not order Piatti to pay a civil money penalty based on his financial inability to pay. The Court did prohibit Piatti from participating in the offer or sale of a penny stock.
The SEC filed this action on August 15, 2002 against Piatti and two other defendants alleging that they engaged in a scheme to pump-and-dump Lifekeepers International, Inc.'s (Lifekeepers) common stock. The Complaint alleged that the Defendants attempted to inflate artificially the price of Lifekeepers' stock by issuing press releases and other public documents that contained materially false and misleading information concerning, among other things, Lifekeepers' operations and expected financial results.
See also, Litigation Release No. 17685 (August 15, 2002).