U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19153 / March 23, 2005
Securities and Exchange Commission v. Ronald J. Bauer, Civil Action No. 3:05-CV-0426-H, United States District Court for the Northern District of Texas, Dallas Division.
SEC SUES RONALD J. BAUER IN $1.5 MILLION INTERNATIONAL MARKET MANIPULATION SCHEME
On March 2, 2005, the Securities and Exchange Commission filed securities fraud charges against 30-year-old Ronald J. Bauer, the alleged architect of a $1.5 million pump-and-dump scheme. In a civil enforcement action filed in the United States District Court for the Northern District of Texas (Dallas Division), the Commission is seeking fines and disgorgement of ill-gotten gains, including the $1.5 million in proceeds of the fraud.
The Commission's complaint alleges that Bauer masterminded a pump-and-dump scheme. From November 2002 through January 2003, Bauer pumped the stock of The Bauer Partnership Inc. (the "Bauer Partnership") by issuing false and misleading press releases, while secretly dumping tens of millions of Bauer Partnership shares into the inflated market that he had created.
Specifically, the Commission charges that:
According to the complaint, Bauer - a self-proclaimed "financier" - refused to cooperate with the Commission's investigation. He declined to give a statement to the Commission staff and denied his attorney authorization to disclose his whereabouts. The Commission effected service of process on March 20, 2005 at Bauer's luxury condominium in Vancouver, British Columbia.
The complaint alleges that Bauer violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933; Sections 10(b), 13(d) and 16(a) of the Securities Exchange Act of 1934, and Rules 10b-5, 13d-1 and 16a-3 thereunder; and aided and abetted the Bauer Partnership's violations of Section 13(a) of the Exchange Act and Rules 13a-11, 13a-13 and 12b-20 thereunder. The complaint seeks a permanent injunction, officer-and-director and penny-stock bars, disgorgement with pre-judgment interest and a civil money penalty.