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SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15137 / October 29, 1996
ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 849 / October 29, 1996
Securities and Exchange Commission v. Balance for Life, Inc.,
Richard K. Steele, Sr., Richard K. Steele, Jr., Peter C. Tosto,
and Marcia Ann Coppertino, D. Colo. Civil No. 95-D-2471.
The Securities and Exchange Commission announced that on
October 24, 1996, Judge Wiley Y. Daniel of the United States
District Court for the District of Colorado issued a Final
Judgment of Permanent Injunction and Other Relief which was
entered by consent against defendant Balance for Life, Inc., a
California based nutritional supplement company, and Richard K.
Steele, Sr., its president and a resident of Beverly Hills,
California.
The Court enjoined Balance for Life and Steele Sr. from
selling unregistered securities in violation of Section 5(a) and
(c) of the Securities Act, making false statements in connection
with the sales of securities in violation of Section 17(a) of the
Securities Act and Section 10(b) of the Exchange Act, failing to
keep basic accounting books and records for a public company as
required by Section 13(b)(2)A) and (B) of the Exchange Act, and
filing false periodic reports with the SEC, such as Forms 10-Q
and 10-K in violation of 15(d) of the Exchange Act. The Court
also enjoined Steele Sr. from selling securities without being
registered as a broker-dealer.
The SEC's Amended Complaint alleged that, among other
things, from 1991 through 1994, Balance for Life, Steele Sr. and
others sold shares of Balance for Life, Inc. common stock to 82
investors for proceeds of at least $1,400,000 while there was no
registration statement in effect or filed with the Commission and
without complying with any of the available exemptions from
registration. The Amended Complaint alleges that the company and
Steele Sr. made false statements to prospective investors that
the stock of Balance for Life would soon publicly trade on
Nasdaq, that Balance for Life would earn $0.85 per share and
$2.14 per share in 24 and 36 months, and claimed that the stock
of Balance for Life would soon trade at $17 to $45 per share, all
without reasonable basis. In fact, Balance for Life did not have
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
ACCOUNTING AND AUDITING ENFORCEMENT
Securities and Exchange Commission v. Balance for Life, Inc., Richard K. Steele, Sr., Richard
The Securities and Exchange Commission announced that on October 24, 1996, Judge Wiley Y.
The Court enjoined Balance for Life and Steele Sr.
from selling unregistered securities in violation of Section 5and of the Securities Act,
from selling securities without being registered as a broker-dealer.
The SEC's Amended Complaint alleged that, among other things, from 1991 through 1994, Balance
and others sold shares of Balance for Life, Inc. common stock to 82 investors for proceeds of
The Amended Complaint alleges that the company and Steele Sr.
made false statements to prospective investors that the stock of Balance for Life would soon
In fact, Balance for Life did not have sufficient assets for listing on Nasdaq, had no
operated an unregistered broker-dealer and used telephone solicitors and lead lists to sell
The Final Judgement ordered Balance for Life to disgorge $1,000,000 and Steele Sr.
to disgorge $400,000, the money they obtained in connection with their violations of the
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