 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC LITIGATION RELEASE
|
EXTRACTED KEY WORDS
SECURITIES HOURMOUZIS LOUGHNAN RENTECH EXCHANGE COMMISSION JUDGEMENT INTERNET SPAM OPERATION STOCK UNITED STATES STEPHEN HOURMOUZIS WAYNE LOUGHNAN TRADING PROFITS DISTRICT COURT DISGORGEMENT FEDERAL SECURITIES LAWS SECURITIES EXCHANGE ACT THEREUNDER ORDERED HOURMOUZIS PAY DISGORGEMENT PREJUDGMENT POSTJUDGMENT ILL-GOTTEN PROFITS INTERNATIONAL COOPERATION COORDINATION AUSTRALIAN SECURITIES INVESTMENT COMMISSION |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16705 / September 15, 2000
SECURITIES AND EXCHANGE COMMISSION v. STEPHEN HOURMOUZIS AND WAYNE
LOUGHNAN, No. 00-N-905 (D. Colo.)
The Commission announced today that it obtained a default judgment
against two defendants who perpetrated an Internet spam operation that
falsely touted the stock of Rentech, Inc. in early May 1999. As
alleged in the complaint, Stephen Hourmouzis and Wayne Loughnan sent
between six and seven million spam e-mails and posted several messages
on Internet bulletin boards that contained numerous false statements
touting Rentech. The messages, which were masked and made to appear as
though written by analysts, caused the price of Rentech's stock to
double and trading volume to increase by 1,600 percent before Nasdaq
halted trading. The Commission alleged that Hourmouzis and Loughnan
thereafter sold their Rentech stock into the inflated market,
realizing approximately $14,000 in profits. Rentech was not implicated
in the spam operation.
In its final judgment, the United States District Court for the
District of Colorado permanently enjoined Hourmouzis and Loughnan from
violating the antifraud provisions of the federal securities laws
(Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder). The Court also ordered Hourmouzis and Loughnan jointly
and severally to pay disgorgement of $14,256.25, prejudgment interest
of $1,537.50, and postjudgment interest from the date of judgment
until they have fully disgorged their ill-gotten profits.
The Commission's action is a result of international cooperation and
coordination, and the Commission thanks the Australian Securities and
Investment Commission.
_________________________________________________________________
Modified 09/19/2000
SNIPPETS:
|
|
|
| | | |
|
|
