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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION GATEWAYS SECURITIES JUDGEMENT STOCK INVESTORS UNITED STATES EXCHANGE COMMISSION KARABOCHOS UNITED STATES DISTRICT CALIFORNIA SALES LOUIS COURT CIVIL VIOLATING PAID COMMISSIONS ACT GATEWAYS OWNER LOUIS RESTRICTED GATEWAYS STOCK PLEASANTON MARKETED VIDEOTAPES SPACE EXPLORATION SOLD GATEWAYS STOCK INVESTORS NATIONWIDE SELLING DISCLOSE JUDGMENT ENJOINS BOYD FUTURE VIOLATIONS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16619 / July 6, 2000
SECURITIES AND EXCHANGE COMMISSION v. LOUIS G. KARABOCHOS, KATHY D.
KARABOCHOS, KENNETH E. RATTO AND STEPHEN L. BOYD, United States
District Court for the Northern District of California, San Francisco
Division, Civil Action No. 98-3718 MMC.
COURT ENTERS JUDGMENT AGAINST GATEWAYS TO SPACE SALES AGENT FOR
OFFERING FRAUD
United States District Judge Maxine M. Chesney entered judgment
against Stephen L. Boyd of Chico, California, for his role in a
fraudulent sale of unregistered stock in Gateways to Space, Inc. The
judgment, entered June 20, 2000, forbids Boyd from violating the
antifraud and registration provisions of the federal securities laws
and requires him to pay disgorgement of $102,084 and a civil money
penalty of $50,000.
The Commission alleged in its action that Boyd was employed by
Gateways owner Louis Karabochos in 1995 to sell unregistered,
restricted Gateways stock to investors. Gateways, a company formerly
based in Pleasanton, California, marketed videotapes about space
exploration. Boyd and others sold Gateways stock to over 850 investors
nationwide. Investors lost approximately $5 million when the company
collapsed. In selling the stock, Boyd failed to disclose that he was
being paid commissions on the sales. Indeed, when asked about
commissions by some investors, Boyd denied that he was being paid
commissions.
The judgment enjoins Boyd from future violations of sections 5(a),
5(c) and 17(a) of the Securities Act of 1933 and sections 10(b) and
15(a) of the Securities Exchange Act of 1934 and Rule 10b-5.
_________________________________________________________________
Modified 07/07/2000
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