UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16085 \ March 12, 1999
SEC V. OMNI INTERNATIONAL TRADING, INC., et al., D.Minn., CIVIL
ACTION NO. 97-2116, FILED SEPTEMBER 17, 1997.
The Commission announced the entry of an Order of Permanent
Injunction and other Equitable Relief by Default ("Order by
Default") against Omni International Trading, Inc. ("Omni"),
Daniel L. Koehler ("Koehler") and Michael A. Wilcox ("Wilcox") on
December 4, 1998. The Commission also announced the entry of an
Order of Permanent Injunction and other Equitable Relief
("Order") against Brian E. Farley ("Farley") and John C.
Hetherington ("Hetherington") on March 1, 1999. Farley and
Hetherington consented to the entry of the Order without
admitting or denying the allegations of the Complaint. The
orders were based on the Commission’s Complaint, which was filed
on September 17, 1997 and alleged that, from in or about January
1991 through in or about February 1995, referred to as the
relevant time period, Omni, Koehler, Wilcox, Farley, Hetherington
and the other defendants defrauded public investors through the
offer and sale of over $4 million in Omni securities. These
securities were not registered with the Commission. The
Commission’s Complaint also alleged that throughout the relevant
time period, Omni , Koehler, Wilcox, Farley and Hetherington and
the other defendants, in connection with the offer and sale of
these Omni shares, made numerous misrepresentations and omitted
to state material facts regarding, among other things, Omni’s
future revenues, the use of proceeds, the listing of Omni
securities for trading on the National Association of Securities
Dealers Automated Quotations system, a purported tender offer,
the expected profit to be made on the tender offer and the
commissions to be earned. In addition, the Commission’s
Complaint alleged that Koehler, Farley and others acted as an
unregistered broker or dealer.
The Honorable David S. Doty of the U.S. District Court for
the District of Minnesota entered the orders enjoining Omni from
future violations of Sections 5(a), 5(c) and 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
promulgated thereunder. The orders also enjoined Koehler and
Farley from future violations of Sections 5(a), 5(c) and 17(a) of
the Securities Act, Sections 10(b), 15(a)(1) and 15(c) of the
Exchange Act and Rules 10b-5 and 15c1-2 promulgated thereunder.
In addition, the orders enjoined Wilcox Hetherington from future
violations of Section 17(a) of the Securities Act, Section 10(b)
of the Exchange Act and Rule 10b-5 promulgated thereunder. The
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SEC V. OMNI INTERNATIONAL TRADING, INC., et al., D.Minn., CIVIL
The Commission announced the entry of an Order of Permanent Injunction and other Equitable
The Commission also announced the entry of an Order of Permanent Injunction and other
Farley and Hetherington consented to the entry of the Order without admitting or denying the
The orders were based on the Commission’s Complaint, which was filed on September 17, 1997
The Commission’s Complaint also alleged that throughout the relevant time period, Omni,
tender offer, the expected profit to be made on the tender offer and the commissions to be earned.
The Honorable David S. Doty of the U.S. District Court for the District of Minnesota entered
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
The orders also enjoined Koehler and Farley from future violations of Sections 5, 5and 17of
The Order by Default ordered that Omni, Koehler and Wilcox pay disgorgement of ill-gotten
The Order found that Farley and Hetherington should each pay disgorgement in the amounts of
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