U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19575 / February 23, 2006
SEC v. Dean J. Sheptycki, Misc. No. 06-MS-00074 (D.D.C. February 17, 2006)
SEC Seeks to Enforce Subpoena in Fax Blasting Investigation
On February 17, 2006, the Commission filed an application with the United States District Court for the District of Columbia for an order to enforce an investigative subpoena served on Dean J. Sheptycki, a Canadian citizen who maintains a residence in Fort Lauderdale, Florida. The Commission's application alleges that Sheptycki played a role in the production and/or mass dissemination of faxes touting the securities of two thinly traded American companies-National Storm Management, Inc. (NLST) and Deep Rock Oil & Gas, Inc. (DPRK). These companies, which trade on the over-the-counter market, have been the recent subjects of widespread fax blasts and spam emails touting the value of their securities in the wake of Hurricane Katrina. According to the application, an entity that Sheptycki controls then profited from transactions in these securities in the wake of Hurricane Katrina. The subpoena seeks documents relevant to the Commission's investigation into unlawful attempts to profit by illegal touting or market manipulation by certain members of and/or entities created by a Shell Creation Group or others. Sheptycki failed to produce documents required by the subpoena and also failed to appear for testimony as required.
This is the third subpoena enforcement proceeding arising out of this investigation. On December 15, 2005, the Commission sought to enforce subpoenas issued to Gary W. Zinn; Tanika Consulting Group, Inc.; and Dynamic Marketing Solutions. See Litigation Release No. 19498 (December 19, 2005). On April 8, 2005, the Commission sought to enforce subpoenas issued to J. Shrewder. See Litigation Release No. 19180 (April 12, 2005). In both matters, the Court enforced the subpoenas by issuing stipulated Orders.
On December 23, 2004, the Commission issued an Order suspending trading in ArTec, Inc. common stock for a period of ten days. See Securities Exchange Act of 1934 Release No. 50923 (December 23, 2004).
The Commission has issued an Investor Alert concerning investment related faxes. This alert is available on the Commission's website at the following location: http://www.sec.gov/investor/pubs/junkfax.htm.