U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19056 / January 28, 2005
S.E.C. v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.)
On December 22, 2004, the Honorable Dale A. Kimball, United States District Judge for the District of Utah, entered a Final Judgment against David M. Wolfson ("Wolfson"). Wolfson was permanently enjoined from future violations of the antifraud provisions of the federal securities laws and ordered to pay disgorgement of $2,759,983.00 plus prejudgment interest of $172,121.82 together with a civil penalty of $120,000.00 and barred from participating in any offering of penny stock and from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 ("Exchange Act") or that is required to file reports pursuant to Section 15(d) of the Exchange Act.
In October 2003, the Commission filed a Complaint, in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in a scheme to sell securities in five United States-based microcap issuers to hundreds of investors located primarily in the United Kingdom, Australia and New Zealand through a boiler room located in Vientiane, Laos. In that action, the Commission obtained an order which, among other things, froze the assets of a number of defendants, including Wolfson. On February 27, 2004, the Court entered an order of contempt against Wolfson for violating the order freezing Wolfson's assets.
The Final Judgment, to which the Wolfson consented without admitting or denying the allegations of the Commission's complaint, specifically enjoins Wolfson from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Section 17(a) of the Securities Act of 1933.