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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
EXCHANGE EXCHANGE COMMISSION SECURITIES MICROCAP FRAUD BIO-TECH INDUSTRIES JOEY DAVIS CIVIL ACTION SETTLEMENT EXCHANGE ACT COMPLAINT MATERIALLY FALSE MISLEADING MARKET LIT ENFORCEMENT BREAKTHROUGH MEDICAL DEVICES HIGHLY-SUCCESSFUL EFFORTS NUTRITIONAL SUPPLEMENTS ACQUISITION SUCCESSFUL TEA COMPANY ACCORDING MINIMIZING MICROCAP FRAUD INSPECTIONS INVESTOR EDUCATION REGULATION RESPONSE HTTP |
SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16339 / October 19, 1999
SECURITIES AND EXCHANGE COMMISSION v. BIO-TECH INDUSTRIES, INC.,
LORETTA DAVIS, JOEY DAVIS, MICHAEL DAVIS, GREGORY GILBERT and STEVEN
SCHWARTZ, Civil Action No. 98-2298 (D.D.C.)
SEC SETTLES MICROCAP MANIPULATION CASE AGAINST JOEY DAVIS
The Securities and Exchange Commission reached a settlement with Joey
Davis ("Davis"), President of Bio-Tech Industries, Inc. ("Bio-Tech")
(formerly Twenty First Century Health, Inc.), in the civil action As
part of the settlement, without admitting or denying the Commission's
allegations, Davis consented to the entry of an order permanently
enjoining him from violations of Section 10(b) of the Securities and
Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5, and
requiring him to pay a civil penalty of $25,000.
In its complaint, the Commission alleged that, among others, Davis
participated in preparing, reviewing, or approving five separate
public announcements concerning Bio-Tech that he knew or was reckless
in not knowing contained materially false and misleading information.
In these press releases the company claimed an exclusive license to
market "breakthrough" medical devices, extolled its highly-successful
efforts to market a new line of nutritional supplements, and reported
the acquisition of what appeared to be a successful and nationally
known tea company. Each of those claims was materially false and
misleading, according to the complaint.
The Commission previously has taken action with respect to these
matters. See Lit. Rel. No. 15996 (December 9, 1998); Lit. Rel. No.
15600 (December 22, 1997).
This enforcement action is part of the Commission's four-pronged
approach to minimizing Microcap fraud enforcement, inspections,
investor education and regulation. For more information about the
SEC's response to Microcap fraud, visit the SEC's Microcap Fraud
Information Center at http //www.sec.gov/news/extra/microcap.htm.
_________________________________________________________________
Modified 10/22/1999
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