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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
DALTON MASINI EXCHANGE ACT JUDGMENTS EXCHANGE COMMISSION DEFENDANTS VIOLATIONS REGISTRATION PROVISIONS COMPLAINT PAY DISGORGEMENT INVESTOR ROBERT JAMES CALIFORNIA PERMANENT ANTIFRAUD SALE UNREGISTERED SECURITIES CONNECTION CALIFORNIA WORM FARMING WORM FARMING BUSINESS ECOLOGY FARMS MANAGEMENT INVESTORS NATIONWIDE MISUSED INVESTOR FUNDS SECURITIES SALES EFFORT THEREUNDER BROKER-DEALER REGISTRATION PROVISIONS |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16622 / July 6, 2000
SECURITIES AND EXCHANGE COMMISSION v. ROBERT J. DALTON, JAMES L.
MASINI AND GEORGE J. BODLAK, Civil Action No. 99-09826 RAP (AJWx)
(C.D. Cal.)
The Securities and Exchange Commission ("Commission") announced that,
on June 7, 2000, the Honorable Richard A. Paez, United States Circuit
Judge sitting by designation for the Central District of California,
issued Final Judgments of Permanent Injunction and Other Relief
("Final Judgments") against defendants Robert J. Dalton ("Dalton") and
James L. Masini ("Masini"). The Final Judgments permanently enjoin
Dalton and Masini from future violations of the antifraud and
registration provisions of the federal securities laws they were
alleged in the Complaint to have violated. The Final Judgments also
order Dalton and Masini to pay disgorgement in the amounts of $677,339
and $179,500, respectively, representing their ill-gotten gains, but
waive payment of disgorgement due to the defendants' financial
inability to pay, except that Masini is required to disgorge $1,843.
Dalton and Masini consented to the entry of the Final Judgments
without admitting or denying the allegations in the Complaint.
The Commission alleged in its Complaint that, from 1995 to 1998, the
defendants engaged in the fraudulent offer and sale of unregistered
securities in connection with a California worm farming business
operated by Ecology Farms Management, Inc. The defendants raised
approximately $8.5 million from more than 250 investors nationwide and
misused investor funds to pay for the securities sales effort and to
pay some investor returns. The Complaint alleged that Dalton and
Masini violated the antifraud provisions of Section 17(a) of the
Securities Act of 1933 ("Securities Act"), Section 10(b) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
thereunder and the securities registration provisions of Sections 5(a)
and 5(c) of the Securities Act, and also alleged that Dalton violated
the broker-dealer registration provisions of Section 15(a) of the
Exchange Act.
_________________________________________________________________
Modified 07/07/2000
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