U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19127 / March 9, 2005
SEC SETTLES CHARGES AGAINST EDWARD LANDENBAUM
SEC V. PRECIOUS STONES TRADING WORLDWIDE, INC., et al. 00 CIV. 6097 (S.D.N.Y.)
The Securities and Exchange Commission (“Commission”) announced today a settlement of the civil action against Edward Landenbaum (“Landenbaum”) of Brooklyn, New York. In the Commission’s civil action, Securities and Exchange Commission v. Precious Stones Trading Worldwide, Inc., et. al, 00 Civ. 6097 (KMK) (SDNY), the Honorable Kenneth M. Karas, United States District Judge for the Southern District of New York, issued a Final Judgment on Consent for Edward Landenbaum, permanently enjoining Landenbaum from violations of Sections 5 and 17(a) of the Securities Act of 1933 (“Securities Act”) and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder. The civil action, filed on August 16, 2000, alleged that from October 1997 to April 2000, Landenbaum participated in a fraudulent private placement of approximately $5.5 million worth of Precious Stones stock to approximately 208 investors.
In a related administrative proceeding before the Commission, instituted against Landenbaum on August 31, 2004, the Commission issued an Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 Against Edward Landenbaum (“Order”). The Order bars Landenbaum from association with any broker or dealer pursuant to Section 15(b) of the Exchange Act, and from participating in any offering of a penny stock. The Order found that permanent injunctions were entered against Landenbaum in the civil action, and that Landenbaum pleaded guilty to conspiracy to commit securities fraud and securities fraud in a parallel criminal action, US v. Rapoport, et al., 00 CR 856 (SDNY).
On November 25, 2003, in the parallel criminal action, Landenbaum was sentenced to 24 months in prison, followed by 24 months probation, and was ordered to pay, jointly and severally with his co-defendant Igor Landenbaum, $2 million in restitution. US v. Rapoport, et al., 00 CR 856 (SDNY).
The Commission acknowledges the assistance of the United States Attorney’s Office for the Southern District of New York in this matter.
See also: LR 16653 (August 16, 2000)