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SEC v THOR EQUITY GROUP, LLC and GEORGE E. MAHFOUZ, JR Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16683, Defendant: Thor Equity Group, LLC and George E. Mahfouz, Jr., Plaintiff: SEC, State: AZ Arizona, UniqueCaseRef: SEC>LR-16683, Stock, Mahfouz, Thor Equity, Canceroption, Internet, Commission, Price, Analyst, Reports, Exchange Commission, Manipulation, Commission Alleges, Stock Price Projections, Internet Fraud, Pay, Securities, Scottsdale, Website, Inflate, Sold, Amounts, Sweep, Complaint, Shares, Trading, Civil, Penalty, Ill-gotten Gain, Civil Money Penalty, Settlement , ContentID: 120241429

Case Documents
1 2000-09-06 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104522
2 pages
HTML
Total Documents: 1 document , 2 pages
Price: $ 19.95


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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
MAHFOUZ
THOR EQUITY
CANCEROPTION
INTERNET
COMMISSION
PRICE
ANALYST
REPORTS
EXCHANGE COMMISSION
MANIPULATION
COMMISSION ALLEGES
STOCK PRICE PROJECTIONS
INTERNET FRAUD
PAY
SECURITIES
SCOTTSDALE
WEBSITE
INFLATE
SOLD
AMOUNTS
SWEEP
COMPLAINT
SHARES
TRADING
CIVIL
PENALTY
ILL-GOTTEN GAIN
CIVIL MONEY PENALTY
SETTLEMENT
   UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16683/ September 6, 2000

   ., Civ. No. CIV 00-1699-PHX VAM (D. Ariz.)

   Today, the Securities and Exchange Commission sued George E. Mahfouz,
   Jr. and Thor Equity Group, LLC ("Thor Equity") both of Scottsdale,
   Arizona, charging that, through use of the Internet, they manipulated
   the stock of CancerOption.com, Inc. ("CancerOption"). CancerOption, a
   microcap company headquartered in Scottsdale, operates a website
   focused on cancer-related products and information. The Commission
   alleges that Mahfouz and Thor Equity, as CancerOption's investor
   relations company, made false financial and stock price projections
   and drafted false press releases to inflate the price of CancerOption
   stock. The Commission contends that Mahfouz then sold large amounts of
   his CancerOption stock at the artificially inflated prices. This
   action is part of the fourth nationwide Internet fraud sweep conducted
   by the Commission since October 1998.

   In the Complaint, the Commission charges that Thor Equity and Mahfouz,
   arranged for two analysts to draft research reports regarding
   CancerOption. The reports, recommending the purchase of CancerOption's
   stock, contained false revenue and stock price projections for the
   company based on information provided by Thor Equity and Mahfouz. The
   Commission also alleges that from August 1999 through January 2000,
   Thor Equity and Mahfouz placed the reports on CancerOption's website
   and arranged for the false financial information to be disseminated on
   the Internet. Moreover Thor Equity and Mahfouz drafted and issued a
   CancerOption press release which falsely characterized one of the
   analysts as the "first independent analyst" to cover CancerOption. The
   analyst was not independent because Thor Equity had agreed to pay the
   analyst 5,000 shares of CancerOption stock for the report. The
   Commission alleges that the false financial projections which appeared
   on the Internet fueled a dramatic rise in both the price and the
   trading volume of CancerOption's common stock. Throughout the time the
   false financial information appeared on the Internet, Mahfouz sold
   over 350,000 shares of CancerOption stock for profits of more than
   $180,000.

   Thor Equity and Mahfouz have agreed, without admitting or denying the
   allegations in the Commission's complaint, to an Order enjoining them
   from violating Section 10(b) of the Exchange Act and Rule 10b-5
   thereunder. Mahfouz has agreed to pay disgorgement of $180,038.51,
   representing the amount of ill-gotten gain from his trading in
   CancerOption stock, and a civil money penalty of $50,000.00. In the
   settlement, no civil penalty will be imposed against Thor Equity based
   on its demonstrated inability to pay.
SNIPPETS:
  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  • Today, the Securities and Exchange Commission sued George E. Mahfouz, Jr.
  • and Thor Equity Group, LLC both of Scottsdale, Arizona, charging that, through use of the
  • CancerOption, a microcap company headquartered in Scottsdale, operates a website focused on
  • The Commission alleges that Mahfouz and Thor Equity, as CancerOption's investor relations
  • The Commission contends that Mahfouz then sold large amounts of his CancerOption stock at the
  • This action is part of the fourth nationwide Internet fraud sweep conducted by the Commission
  • The reports, recommending the purchase of CancerOption's stock, contained false revenue and
  • The Commission also alleges that from August 1999 through January 2000, Thor Equity and
  • Moreover Thor Equity and Mahfouz drafted and issued a CancerOption press release which
  • The analyst was not independent because Thor Equity had agreed to pay the
  • The Commission alleges that the false financial projections which appeared on the Internet
  • Throughout the time the false financial information appeared on the Internet, Mahfouz sold
  • Thor Equity and Mahfouz have agreed, without admitting or denying the allegations in the
  • Mahfouz has agreed to pay disgorgement of $180,038.51, representing the amount of ill-gotten
  • In the settlement, no civil penalty will be imposed against Thor Equity based on its
  • For a description of other SEC enforcement actions involved in this Internet Market
  •    |