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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
MADISON GROUP COMMISSION SECURITIES CRAIG MATTER SIECK STOCK PUBLICLY-HELD VIOLATIONS ACCOUNTING ENFORCEMENT MICROCAP PURSUANT ENTRY THEREUNDER CABRERA COMPLAINT ADMINISTRATIVE PROCEEDINGS GENTILE CIVIL OFFICER ASSETS FINANCIAL STATEMENTS REGULATION SETTLEMENT DEFENDANT ADMITTING DENYING ALLEGATIONS |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16056 / February 10, 1999
Accounting and Auditing Enforcement Release No. 1108 /
February 10, 1999
SECURITIES AND EXCHANGE COMMISSION v. WILLIAM T. CRAIG AND
SCOTT R. SIECK, No. 99-6165-CIV-Dimitrouleas (S.D. Fla.
February 10, 1999).
SEC Sues Former Chairman and Consultant to South
Florida Microcap Entertainment Company
The Securities and Exchange Commission ("Commission")
today announced the filing of a civil injunctive action
against William T. Craig ("Craig"), the former Chairman and
Chief Executive Officer of Madison Group Associates, Inc.
("Madison Group"), a now defunct microcap entertainment
company, formerly based in Fort Lauderdale, Florida. The
complaint also names Scott R. Sieck ("Sieck"), a former
consultant to the company. The Commission’s complaint
alleges that from February 1992 through March 1994, Craig
caused Madison Group to dramatically overstate the value of
its assets in financial statements filed with the
Commission. The unconventional assets at issue, including
aging libraries of country music video programs, were
obtained in exchange for Madison Group stock and were
generally valued on the basis of overly optimistic
projections about their commercial potential. This
misstatement of asset values allowed Madison Group to
maintain a listing for its stock on the NASDAQ national
market system and to sell its stock to the public at
inflated prices. During the same period, Madison Group
issued numerous press releases making false claims about its
capital position, revenues and business activities.
In addition, in an offering purportedly conducted
pursuant to Commission Regulation S, the company issued
stock to an offshore entity controlled by Craig and Sieck
that shortly thereafter sold the shares into United States
markets. Craig and Sieck personally profited from their
undisclosed role in this abusive Regulation S offering.
Finally, Craig failed to comply with the Commission's
disclosure requirements in connection with his numerous
purchases and sales of Madison Group stock.
The matter has been settled with both defendants.
Defendant Craig has consented, without admitting or denying
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