U.S. Securities and Exchange Commission
Litigation Release No. 18278 / August 7, 2003
Securities & Exchange Commission v. Scott Alexander Gryskiewicz, United States District Court for the Eastern District of New York, Civil Action No. 98 Civ. 7688 (NG)
The Securities and Exchange Commission announced today that the United States District Court for the Eastern District of New York entered on July 16, 2003 a Partial Judgment Imposing A Permanent Injunction And Other Equitable Relief On Consent Against Defendant Scott Alexander Gryskiewicz, age 32, and a resident of Nutley, New Jersey. Gryskiewicz consented to the Partial Judgment without admitting or denying the allegations of the Commission's Complaint, filed on December 15, 1998, which alleged that:
1. Gryskiewicz from at least May 1998 through December 1998, unlawfully acted as an unregistered broker, directly and through an office that he operates in Lodi, New Jersey. In the course of his unlawful activity as an unregistered broker, Gryskiewicz obtained approximately $160,000 by offering and selling to at least 71 investors unregistered securities in the form of units consisting of common stock and warrants ("Units") issued by Pan American Securities, Inc. ("Pan American").
2. Gryskiewicz made telephonic "cold calls" and offered and sold the Pan American Units to investors by means of a variety of false and misleading representations, including false claims that: a) Pan American was about to make an initial public offering ("IPO"); b) the Pan American Units are freely tradable, when they are restricted; and c) the Pan American Units could be sold for a substantial profit after the purported IPO.
3. Gryskiewicz also embarked on another fraudulent offering. Since at least October 1998 through December 1998, Gryskiewicz attempted to solicit investments in a purported private placement of unregistered common stock and warrants issued by Freetrade.com, Inc. ("Freetrade"). In the course of offering Freetrade securities, Gryskiewicz disseminated a private placement memorandum ("Freetrade PPM") that falsely represented that the offered Freetrade securities are "immediately tradable," when they are, in fact, restricted.
The partial judgment permanently enjoins Gryskiewicz from committing future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C. §77q(a), and Sections 10(b), 15(a)(1) and 15(c)(1) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§78j(b), 78o(a)(1) and 78o(c)(1), and Rules 10b-3, 10b-5 and 15c1-2 thereunder, 17 C.F.R. §§240.10b-3, 240.10b-5 and 240.15c1-2.
The partial judgment provides that the Court will decide, at a later time, the issue of disgorgement and what civil penalty should be imposed on Gryskiewicz.
See prior Litigation Release 16005 issued on December 17, 1998.