SECURITIES AND EXCHANGE COMMISSION
Washington, D.C
SECURITIES AND EXCHANGE COMMISSION v. ANDREW S. PITT, CONECTISYS
CORP.,
DEVON INVESTMENT ADVISORS, INC., B & M CAPITAL CORP., MIKE ZAMAN, and
SMITH, BENTON & HUGHES, INC., United States District Court for the
Central
District of California, Civil Action No. 96-4164 (MRP) (ANx)
Litigation Rel. No.15446/ August 18, 1997
The Securities and Exchange Commission ("Commission") announced
that
on August 12, 1997, the United States District Court for the Central
District of California issued an order finding that Andrew S. Pitt
("Pitt"), Conectisys Corporation ("Conectisys"), Mike Zaman ("Zaman"),
B&M
Capital Corp. ("B&M"), and Smith Benton & Hughes, Inc. ("Smith
Benton")
committed fraud. The Court also found that Pitt, Conectisys, and
Devon
Investment Advisors, Inc. ("Devon") had sold securities that should
have
been registered. The Court directed the Commission to file proposed
findings of fact and conclusions of law by September 8, gave
defendants
until September 29 to file objections thereto, and stated that it
would
address remedies to be granted after it had settled the findings and
conclusions.
The Commission had alleged that in late November 1994, while Pitt
was
an Assistant United States Attorney, he purchased a controlling share
of
Conectisys (then named "Coastal Financial Corp.") and operated it as
BDR
Industries, Inc. On August 7, 1995, Pitt purported to sell his
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. ANDREW S. PITT, CONECTISYS
DEVON INVESTMENT ADVISORS, INC., B & M CAPITAL CORP., MIKE ZAMAN, and SMITH, BENTON & HUGHES,
District of California, Civil Action No. 96-4164
Capital Corp., and Smith Benton & Hughes, Inc. committed fraud.
The Court also found that Pitt, Conectisys, and Devon
Investment Advisors, Inc. had sold securities that should have been registered.
The Court directed the Commission to file proposed findings of fact and conclusions of law by
On August 7, 1995, Pitt purported to sell his controlling interest in the Company for $10.00.
Benton used the business plan in selling shares of Conectisys stock to the public.
The Commission further alleged that from February 14, 1996 through at least May 28, 1996,
endants' manipulative trading practices.
From February 14 through May 28, 1996, defendants' manipulative activities resulted in
Commission alleged that these dramatic increases in the price and trading volume of
See also Litigation Release Nos.
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