United States Securities and Exchange Commission
Litigation Release No. 18171 / June 4, 2003
Accounting and Auditing Enforcement Release No. 1793 / June 4, 2003
Ray Fernandez, Former Chairman and CEO of Madera International, Inc., Enjoined and Barred from Serving as an Officer or Director of a Public Company
SEC v. Ramiro M. Fernandez-Moris, Daniel S. Lezak, and Ramiro Rafael ("Ray") Fernandez, 01 Civ. 1985 (JR) (D.D.C. filed Sept. 19, 2001)
On May 8, 2003, the United States District Court for the District of Columbia entered a judgment of permanent injunction against Ramiro Rafael ("Ray") Fernandez. The judgment enjoins Fernandez from violating the antifraud provisions of the federal securities laws (specifically, Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5) and from aiding and abetting violations of the reporting provisions (Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder). The judgment also permanently prohibits Fernandez from acting as an officer or director of any publicly-held company
The judgment further provides that the amount of any disgorgement or civil penalty to be paid by Fernandez shall be determined by the Court following a hearing. At that hearing, the issues will be limited to determining the appropriateness and amount of any such disgorgement and civil penalty, Fernandez will be precluded from arguing that he did not violate the federal securities laws as alleged in the Commission's amended complaint, and the allegations of the complaint will be accepted as true by the Court.
Fernandez consented to the entry of the judgment without admitting or denying the allegations of the Commission's amended complaint.
Ray Fernandez was Madera's Executive Vice President in charge of sales and marketing and Chief Executive Officer of Madera International Environmental, Inc., a wholly-owned subsidiary of Madera. In December 1998, he was additionally elected Chairman of the Board of Directors of Madera, and later, in November 2000, also became its Chief Executive Officer, replacing his father, Ramiro M. Fernandez-Moris. The amended complaint alleges:
The Court previously entered a Final Judgment of Permanent Injunction By Default against Madera International, Inc. The judgment enjoins Madera from violating the antifraud, reporting, books and records, and internal control provisions of the Securities Exchange Act of 1934 (Sections 10(b), 13(a) and 13(b)(2)(A) and (B), and Rules 10b-5, 12b-20, 13a-1 and 13a-13). Litigation Release No. 17546 (June 6, 2002).