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SEC v BRENT MOLOVINSKY Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16380, CourtCode: DIS, CourtName: (UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND, CIVIL ACTION NO., Defendant: Brent Molovinsky, Plaintiff: SEC, State: MD Maryland, UniqueCaseRef: SEC>LR-16380, Molovinsky, Tvi, Commission, Judgement, Investor, Securities, District, Tvi Stock, Sold, Shares, Exchange Commission, United States, Maryland, Sales, Misleading Statements, Revenues, Civil, Tvi Corporation, Contractor, Entry, Impose, Control, Proceeds, Creditors, Plan, Reorganization, Bankruptcy Code, Exempting, Complaint, Demand , ContentID: 120241730

Case Documents
1 1999-12-07 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104823
2 pages
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Total Documents: 1 document , 2 pages
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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
TVI
COMMISSION
JUDGEMENT
INVESTOR
SECURITIES
DISTRICT
TVI STOCK
SOLD
SHARES
EXCHANGE COMMISSION
UNITED STATES
MARYLAND
SALES
MISLEADING STATEMENTS
REVENUES
CIVIL
TVI CORPORATION
CONTRACTOR
ENTRY
IMPOSE
CONTROL
PROCEEDS
CREDITORS
PLAN
REORGANIZATION
BANKRUPTCY CODE
EXEMPTING
COMPLAINT
DEMAND
   SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16380 / December 7, 1999

(United States District Court for the District of Maryland, Civil Action No.
PJM-963046)

   The Securities and Exchange Commission ("Commission") announced today
   that, on December 2, 1999, the United States District Court for the
   District of Maryland entered a Final Judgment and Order against Brent
   Molovinsky ("Molovinsky"), the former president and chairman of the
   board of TVI Corporation ("TVI"), a publicly held military defense
   contractor headquartered in Beltsville, Maryland. Entry of the
   judgment serves to settle the Commission's case against Molovinsky.

   Without admitting or denying the Commission's allegations, Molovinsky
   consented to the entry of the judgment which permanently enjoins him
   from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of
   1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule
   10b-5 thereunder. The judgment also requires Molovinsky to pay
   disgorgement and prejudgment interest, but waives payment of these
   amounts and does not impose a civil penalty based on his demonstrated
   inability to pay. In addition, the judgment bars Molovinsky from
   acting as an officer or director of any public company.

   The Commission alleged that, between October 1992 and April 1995,
   Molovinsky, who had exclusive control over TVI's day-to-day operations
   and finances, engaged in a scheme in which he misappropriated more
   than $1 million of investor proceeds raised from the sale of over $2.9
   million of TVI stock to at least 699 investors. The stock was to be
   offered and sold to existing TVI investors and creditors pursuant to a
   court-approved plan of reorganization, and was to be subject to a
   provision in the United States Bankruptcy Code exempting such sales
   from registration.

   In its complaint, the Commission charged that Molovinsky fraudulently
   stimulated demand for TVI stock by making materially false and
   misleading statements concerning the company's revenues, earnings and
   assets. Molovinsky disseminated the misleading information through
   investor correspondence and a series of TVI press releases which he
   prepared and issued. Among other things, he overstated TVI's revenues
   and income during 1992 and 1993, falsely represented that TVI had
   contracts to build tank gunnery ranges that would generate revenues
   exceeding $2.5 million, and falsely stated that TVI held patents for
   low-cost stealth material and thermal targets used in military
   applications.

   According to the complaint, Molovinsky took advantage of the increased
SNIPPETS:
  • (United States District Court for the District of Maryland,
  • The Securities and Exchange Commission announced today that, on December 2, 1999, the United
  • Entry of the judgment serves to settle the Commission's case against Molovinsky.
  • The judgment also requires Molovinsky to pay disgorgement and prejudgment interest, but
  • The Commission alleged that, between October 1992 and April 1995, Molovinsky, who had
  • The stock was to be offered and sold to existing TVI investors and creditors pursuant to a
  • In its complaint, the Commission charged that Molovinsky fraudulently stimulated demand for
  • Molovinsky took advantage of the increased demand generated by his false and misleading
  •    |