U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No.19302 / July 14, 2005
S.E.C. v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.)
On June 30, 2005, Dr. Howard H. Robertson was permanently enjoined from future violations of the antifraud provisions of the federal securities laws and barred from serving as an officer or director of any public company. The sanctions were based on his alleged conduct in a scheme to sell shares of domestic microcap issuers to investors in the United Kingdom, Australia and New Zealand.
On October 16, 2003, the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in the fraudulent sale of securities in five United States-based microcap issuers, including Stem Genetics, Inc. Dr. Howard Robertson (Robertson) was the president of Stem Genetics. The Complaint alleged that Robertson made material misrepresentations to Stem Genetics investors regarding the company and its claimed, but nonexistent, stem cell research program. The Complaint also alleged Robertson was responsible for material inaccuracies on Stem Genetics’ website.
The Final Judgment, to which Robertson consented without admitting or denying the allegations of the Complaint, enjoins Robertson from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. The Final Judgment also orders Robertson to pay disgorgement of $19,915.49 together with prejudgment interest of $877.66, buts waives payment of disgorgement and prejudgment interest based on the representations in Robertson’s sworn statement of financial condition. No civil penalty was imposed based upon the same representations. The Final Judgment also bars Robertson from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act.