SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16350 / November 10, 1999
SECURITIES AND EXCHANGE COMMISSION v. BARRY A. BATES, ROBIN A. HEINEY,
et al., United States District Court for the District of Colorado,
Civil Action No. 92-M-1905 (D. Colo. September 14, 1999)
On September 14, 1999, Chief Judge Richard P. Matsch of the U.S.
District Court for the District of Colorado entered orders of
permanent injunction and other equitable relief against Barry A. Bates
of Kalispell, Montana and Robin A. Heiney of Aurora, Colorado. On
September 28, 1992 the Commission filed a complaint alleging that
Bates and Heiney engaged in fraudulent conduct involving the
securities of a now-defunct corporation, U.S. Mint, Inc.. U.S. Mint
was in the business of manufacturing gaming tokens for Las Vegas area
casinos and destroying used gaming tokens to recover the precious
metals. The complaint further alleged that Bates' and Heiney's conduct
violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933,
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder. Bates was additionally charged with having violated Rule
10b-6. Bates and Heiney consented to the orders without admitting or
denying the allegations contained in the Commission's complaint. The
order as to Bates imposed the following relief (1) an injunction
against future violations of the registration and antifraud provisions
of the federal securities laws, (2) an injunction against future
violations of Rules 101 and 102 of Regulation M, and (3) an order for
disgorgement in the amount of $10,381, plus prejudgment interest of
$9,627. Heiney was enjoined from future violations of the registration
and antifraud provisions of the federal securities laws, and ordered
to pay disgorgement in the amount of $10,855, plus prejudgment
interest. Payment of disgorgement and prejudgment interest was waived
based upon Heiney's demonstrated inability to pay.
The complaint against Bates alleged, among other things, that he
accepted undisclosed compensation, in the form of free trading stock,
in return for promoting and selling U.S. Mint stock. During 1989 and
1990, the period of the alleged violations, Bates was the president
and a 45% owner of Brennan Ross Securities, Inc., a former
broker-dealer in the Denver area. Heiney was charged with, among other
things, accepting cash bribes in return for promoting and selling this
microcap stock. Heiney was a registered representative at Brennan Ross
and at National Securities, Inc., another broker-dealer in the Denver
area. On January 18, 1995, Heiney was convicted, on his plea of
guilty, of one count of securities fraud and was sentenced to five
years of probation and ordered to pay a $2,000 fine. The civil action
is continuing against defendant Dana L. Anderson.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. BARRY A. BATES, ROBIN A. HEINEY, et al., United States
On September 28, 1992 the Commission filed a complaint alleging that Bates and Heiney engaged
U.S. Mint was in the business of manufacturing gaming tokens for Las Vegas area casinos and
The complaint further alleged that Bates' and Heiney's conduct violated Sections 5, 5and 17of
The order as to Bates imposed the following relief an injunction against future violations of
Heiney was enjoined from future violations of the registration and antifraud provisions of
The complaint against Bates alleged, among other things, that he accepted undisclosed
During 1989 and 1990, the period of the alleged violations, Bates was the president and a 45%
Heiney was charged with, among other things, accepting cash bribes in return for promoting
The civil action is continuing against defendant Dana L. Anderson.
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