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SEC v KENNETH STEINER and WOODBRIDGE FAMILY MEDICAL ASSOCIATES, P.C Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16695, CourtCode: DIS, CourtName: DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ENTERED FINAL JUDGMENTS, Defendant: Kenneth Steiner and Woodbridge Family Medical Associates, P.C., Plaintiff: SEC, State: WA Washington, UniqueCaseRef: SEC>LR-16695, Lit, Steiner, Securities, Woodbridge, Exchange Commission, Medical Practice, Disgorgement, Complaint, Microcap Fraud, Civil Penalties, Pay, District, Plus Prejudgment, Shares, Soe, Securities Exchange Act, Fraud, Enforcement, Kenneth Steiner, Jersey, Settle, Announcements, Requiring, Manipulate, Market, Profits, Filing, Subsequent Payment, Court-appointed Receiver, Victims , ContentID: 120241417

Case Documents
1 2000-09-11 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104510
2 pages
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Total Documents: 1 document , 2 pages
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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
STEINER
SECURITIES
WOODBRIDGE
EXCHANGE COMMISSION
MEDICAL PRACTICE
DISGORGEMENT
COMPLAINT
MICROCAP FRAUD
CIVIL PENALTIES
PAY
DISTRICT
PLUS PREJUDGMENT
SHARES
SOE
SECURITIES EXCHANGE ACT
FRAUD
ENFORCEMENT
KENNETH STEINER
JERSEY
SETTLE
ANNOUNCEMENTS
REQUIRING
MANIPULATE
MARKET
PROFITS
FILING
SUBSEQUENT PAYMENT
COURT-APPOINTED RECEIVER
VICTIMS
   SECURITIES AND EXCHANGE COMMISSION
   Washington, D.C.

   LITIGATION RELEASE NO. 16695 / September 11, 2000

   SECURITIES AND EXCHANGE COMMISSION v. KENNETH STEINER AND WOODBRIDGE
   FAMILY MEDICAL ASSOCIATES, P.C., Civil Action No. 00-02145 (D.D.C.)

   NEW JERSEY DOCTOR AND HIS MEDICAL PRACTICE PAY $1.3 MILLION TO SETTLE
   SEC CHARGES OF SELLING UNREGISTERED SYSTEMS OF EXCELLENCE SECURITIES

   The Securities and Exchange Commission today announced that on
   September 8, 2000 the Honorable Gladys Kessler of the United States
   District Court for the District of Columbia entered final judgments
   against Kenneth Steiner ("Steiner"), a New Jersey physician, and his
   medical practice, Woodbridge Family Medical Associates, P.C.
   ("Woodbridge"), requiring them to collectively pay over $1.3 million
   in disgorgement, prejudgment interest and civil penalties.

   The Commission's complaint, filed on September 7, 2000, alleges that
   in two separate transactions in March and June 1996, Steiner acquired
   -- for himself, his corporate medical practice and in the names of
   family nominees -- a total of 689,655 shares of newly-issued Systems
   of Excellence, Inc. ("SOE") stock in a private placement at a total
   cost of $200,000. The shares that Steiner and Woodbridge acquired were
   neither registered nor exempt from registration but were nevertheless
   conveyed to them without the required restrictive legend as part of a
   scheme orchestrated by Charles Huttoe, former president of SOE, to
   manipulate the market for SOE securities. According to the complaint,
   Steiner and Woodbridge soon resold nearly all of these newly-issued
   and unregistered shares into the manipulated market, realizing net
   profits of $924,789.

   Simultaneously with the filing of the Complaint, Steiner and
   Woodbridge, without admitting or denying the SEC's allegations,
   settled the action by consenting to entry of the court's Order that
   (i) permanently enjoins them from violating Sections 5(a) and (c) of
   the Securities Act of 1933; (ii) requires Steiner to disgorge his
   illegal profits of $602,648, plus prejudgment interest of $220,433;
   (iii) requires Woodbridge and Steiner to jointly and severally
   disgorge $322,141, plus prejudgment interest of $111,376; and (iv)
   requires Steiner to pay a civil penalty of $50,000.

   With the filing of this Complaint, and the subsequent payment by
   Steiner and Woodbridge, the Commission will have collected
   approximately $12 million in disgorgement, which will later be
   distributed by the Court-appointed receiver to victims of the SOE
   fraud.
SNIPPETS:
  • SECURITIES AND EXCHANGE COMMISSION
  • SECURITIES AND EXCHANGE COMMISSION v. KENNETH STEINER AND WOODBRIDGE FAMILY MEDICAL
  • NEW JERSEY DOCTOR AND HIS MEDICAL PRACTICE PAY $1.3 MILLION TO SETTLE SEC CHARGES OF SELLING
  • The Securities and Exchange Commission today announced that on September 8, 2000 the
  • The shares that Steiner and Woodbridge acquired were neither registered nor exempt from
  • According to the complaint, Steiner and Woodbridge soon resold nearly all of these
  • Simultaneously with the filing of the Complaint, Steiner and Woodbridge, without admitting or and requires Steiner to pay a civil penalty of $50,000.
  • With the filing of this Complaint, and the subsequent payment by Steiner and Woodbridge, the
  • The Commission previously has made several announcements concerning these matters.
  • See Lit Rel. 16632a, Securities Exchange Act Rel. 42616, Lit Rel. 16343, Lit.
  • Securities Exchange Act Rel.
  • This enforcement action is part of the Commission's four-pronged approach to attacking
  • For information about the SEC's response to Microcap fraud, visit the SEC's Microcap Fraud
  •    |