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U.S. Securities and Exchange Commission

Litigation Release No. 18163 / June 2, 2003

Securities and Exchange Commission v. Quest Capital Strategies, Inc. and David Chen Yu, Civil Action No. CV-02-01512 (D.D.C.) (PLF)

Court Grants Commission's Motion To Dimiss Its Complaint Against David Chen Yu And Quest Capital Strategies, Inc.

On May 29, 2003, Judge Paul L. Friedman of the United States District Court for the District of Columbia issued an order, upon the Commission's motion, dismissing the Commission's complaint against defendants David Chen Yu and Quest Capital Strategies, Inc., a registered broker-dealer. The complaint had alleged that Yu, who was then president of defendant Quest, was violating a supervisory bar the Commission had imposed on Yu in an Order Imposing Remedial Sanctions issued on October 15, 2001, Quest Capital Strategies, Inc. and David Chen Yu, Exchange Act Release Nos. 44935 and 40-1990 (the "Commission Order"). The complaint had further alleged that defendant Quest was knowingly permitting Yu to act as a supervisor in violation of the Commission Order.

The Commission's motion to dismiss the complaint cited as grounds for the dismissal developments since the commencement of the lawsuit, including Yu's resignation as president, registered representative, and registered principal, of Quest, as well as evidence obtained through discovery.

The court action was commenced by the Commission on July 31, 2002 with the filing of a complaint and an application for a preliminary injunction. On September 25, 2002 the Court granted the Commission's application for a preliminary injunction against Yu and Quest. For more information about the Commission's complaint and the prior proceedings against Quest and Yu, see SEC v. David Chen Yu and Quest Capital Strategies, Inc., Litigation Release No. 17761 (October 1, 2002 ); SEC v. David Chen Yu and Quest Capital Strategies, Inc., Litigation Release No. 17644 (July 31, 2002 ); and Quest Capital Strategies, Inc. and David Chen Yu, Release Nos. 34-44935 and 40-1990 (October 15, 2001).

 

http://www.sec.gov/litigation/litreleases/lr18163.htm


Modified: 06/02/2003