U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19014 / December 27, 2004
SEC CHARGES CEO OF NEW JERSEY BASED COMPANY WITH MARKET MANIPULATION
U.S. Securities and Exchange Commission v. Martin Fox, Case No. 04-Civ. 6296 (Martini, J.) (D. N.J.) (filed December 23, 2004)
The Commission today filed a settled civil action against Martin Fox of Oradell, New Jersey, charging manipulation of the common stock of Initio, Inc. ("Initio") The complaint, filed in federal district court in New Jersey, alleges that Fox, the CEO of Initio, manipulated the closing bid price of Initio common stock to $1.00 or more with the aim of satisfying NASDAQ's listing requirements for the Small-Cap Market. Without admitting or denying the Commission's allegations, Fox consented to the entry of a final judgment permanently enjoining him from future violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 ("Exchange Act") and ordering that he pay a $25,000 civil penalty. Fox also agreed to a permanent bar from serving as an officer or director of a public company. The Commission's investigation is continuing.
SEC Complaint in this matter