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SEC v DONALD RUTLEDGE and GREGORY SKUFCA Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16681, CourtCode: DIS, CourtName: SKUFCA (UNITED STATES DISTRICT COURT (D. COLO.) 00-K-1751)., Defendant: Donald Rutledge and Gregory Skufca, Plaintiff: SEC, State: CO Colorado, UniqueCaseRef: SEC>LR-16681, Stock, Rutledge, Skufca, Commission, Snelling, Securities, Manipulation, Internet, Plus Solutions, Market Capitalization, Merger, Price, Exchange Commission, Scheme, Internet Fraud, Investors, Securities Act, Charges, Canadian Stock Promoter, Colorado, Shell, Broker, District Court, Commission Alleges, Nationwide, Sweep, Sole, Employee, Shares , ContentID: 120241431

Case Documents
1 2000-09-06 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104524
2 pages
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Total Documents: 1 document , 2 pages
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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
RUTLEDGE
SKUFCA
COMMISSION
SNELLING
SECURITIES
MANIPULATION
INTERNET
PLUS SOLUTIONS
MARKET CAPITALIZATION
MERGER
PRICE
EXCHANGE COMMISSION
SCHEME
INTERNET FRAUD
INVESTORS
SECURITIES ACT
CHARGES
CANADIAN STOCK PROMOTER
COLORADO
SHELL
BROKER
DISTRICT COURT
COMMISSION ALLEGES
BUSINESS
NATIONWIDE
SWEEP
SOLE
EMPLOYEE
SHARES
   UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16681/ September 6, 2000

   SEC CHARGES CANADIAN STOCK PROMOTER AND COLORADO "SHELL" BROKER IN
   STOCK MANIPULATION SCHEME

   Securities and Exchange Commission v. Donald Rutledge and Gregory
   Skufca (United States District Court (D. Colo.) 00-K-1751).

   The Securities and Exchange Commission announced today that it filed
   civil securities fraud charges against Donald Rutledge, a Canadian
   stock promoter, and Gregory Skufca, a Colorado "shell" broker. The
   Commission charged that Rutledge and Skufca illegally manipulated the
   stock of Snelling Travel, Inc. on the OTC Bulletin Board in December
   1999. According to the Commission's Complaint, the manipulation took
   Snelling from a market capitalization of $105,000 in mid-December to a
   theoretical market capitalization of over $93 million less than two
   weeks later. The Commission alleged that Skufca reaped at least
   $500,000 in illicit profits from the scheme. This action is part of
   the fourth nationwide Internet fraud sweep conducted by the Commission
   since October 1998.

   The Complaint, filed in the U.S. District Court for the District of
   Colorado, alleges as follows

   During the relevant period, Plus Solutions, Inc., was a privately held
   client of Rutledge. Plus Solutions had no business operations, but
   purportedly aspired to enter the electronic commerce business. Under
   agreements with investors in Plus Solutions, Rutledge was obligated to
   engineer a merger with an unidentified public shell that would enable
   the Plus Solutions investors to receive stock that traded publicly at
   a price above $4.50 per share.

   Skufca controlled the stock of Snelling, which was located in the home
   of its sole employee and had no revenues from operations. Skufca and
   Rutledge agreed to merge Snelling with Plus Solutions. The merger was
   designed to take Plus Solutions public without a registered offering.
   On December 15, 1999, Rutledge and Skufca caused a press release to be
   issued which announced the merger, whereby these two companies would
   combine their non-existent operations. The press release also
   announced an immediate 29 1 split of Snelling stock, which would
   increase the float to 15.3 million shares.

   On the morning of December 16, the sole market-maker in Snelling (whom
   Skufca had recruited) quoted the stock at $0.20 bid and no offer.
   Rutledge and Skufca then entered matched buy and sell orders through
   different broker-dealers which rocketed the stock to a price of $5.00
SNIPPETS:
  • SEC CHARGES CANADIAN STOCK PROMOTER AND COLORADO "SHELL" BROKER IN STOCK MANIPULATION SCHEME
  • Securities and Exchange Commission v. Donald Rutledge and Gregory Skufca (United States
  • The Securities and Exchange Commission announced today that it filed civil securities fraud
  • According to the Commission's Complaint, the manipulation took Snelling from a market
  • The Commission alleged that Skufca reaped at least $500,000 in illicit profits from the
  • This action is part of the fourth nationwide Internet fraud sweep conducted by the Commission
  • Plus Solutions had no business operations, but purportedly aspired to enter the electronic
  • Under agreements with investors in Plus Solutions, Rutledge was obligated to engineer a
  • Skufca controlled the stock of Snelling, which was located in the home of its sole employee
  • On the morning of December 16, the sole market-maker in Snelling quoted the stock at $0.20
  • With 15.3 million non-restricted shares outstanding, this implied a $93 million market
  • In the injunctive action against Rutledge and Skufca, the Commission alleges violations of
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