U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18646 / March 29, 2004
Securities and Exchange Commission v. Wolfson, et al., 2:02 CV-1086 TC (D. Utah)
SEC Settles Market Manipulation Charges Against BonnieJean C. Tippetts
The Securities and Exchange Commission ("Commission") announced today that on March 26, 2004, the Honorable Tena Campbell, United States District Judge for the District of Utah, Central Division, entered a Final Judgment as to Defendant BonnieJean C. Tippetts of Farmington, Utah.
The Commission's Complaint alleged that Tippetts was executive assistant and office manager to Allen Wolfson, the defendant who coordinated the stock manipulation of Freedom Surf, Inc. ("Freedom Surf") between July and November 2000. Freedom Surf was then a start-up company with offices in Huntington Beach, California. The Complaint alleged that Tippetts acted as Wolfson's nominee for opening and controlling three brokerage accounts involved in the manipulation. Although Tippetts was listed as President or Trustee of the respective accounts, Wolfson directed manipulative trades of Freedom Surf stock out of the accounts. In this way, Tippetts aided and abetted Wolfson's securities fraud violations. The Complaint also alleged that Tippetts was involved in making unregistered sales of Freedom Surf stock out of the accounts on which she was listed.
The Judgment against Tippetts enjoins her from future violations of Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Judgment also bars Tippetts from participating in any offering of penny stock. The Court does not impose a civil penalty in the Judgment against Tippetts, based on her statement of financial condition and supporting documentation submitted to the Commission.
See also: Litigation Release No. 17756 (September 30, 2002).