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SEC v LAWRENCE M. ARTZ, NEUROTECH CORP., ENHANCE RESOURCES, et al Click to find out why . . .



Keywords & Phrases
CaseNo: 33-7681, Defendant: Lawrence M. Artz, Neurotech Corp., Enhance Resources, Inc. and Bruce W. Lynch, Plaintiff: SEC, State: NY New York, UniqueCaseRef: SEC>33-7681, Lynch, Artz, Neurotech, Securities Act, Alleges, Hospitals, Banks, Fraudulent Internet Offering, Turkish Banks, Guarantee, Investors, Commission, Instituting, Lawrence, Resources, Bruce, Pursuant, Resides, York, Prefabricated Hospitals, Turkey, Purchase Orders, Websites, Publishing, Projections, Basis, Projections Relating, Cambodia, Public Hearing, Allegations , ContentID: 120244885

Case Documents
1 1999-05-11 SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below  ] ItemID: 111621
2 pages
HTML
Total Documents: 1 document , 2 pages
Price: $ 19.95


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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS
ARTZ
NEUROTECH
SECURITIES ACT
ALLEGES
HOSPITALS
BANKS
FRAUDULENT INTERNET OFFERING
TURKISH BANKS
GUARANTEE
INVESTORS
COMMISSION
INSTITUTING
LAWRENCE
RESOURCES
BRUCE
PURSUANT
RESIDES
YORK
PREFABRICATED HOSPITALS
TURKEY
PURCHASE ORDERS
WEBSITES
PUBLISHING
PROJECTIONS
BASIS
PROJECTIONS RELATING
CAMBODIA
PUBLIC HEARING
ALLEGATIONS
UNITED STATES SECURITIES AND EXCHANGE COMMISSION

   Securities Act of 1933
   Release No. 7681 / May 11, 1999

   Administrative Proceedings
   File No. 3-9897

   CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST
   LAWRENCE M. ARTZ, NEUROTECH CORP., ENHANCE RESOURCES, INC. AND
   BRUCE W. LYNCH FOR FRAUDULENT INTERNET OFFERING

   The Commission has issued an Order Instituting Cease-and-Desist
   Proceedings and Notice of Hearing Pursuant to Section 8A of the
   Securities Act of 1933 (the "Order") against Lawrence M. Artz
   ("Artz"), Neurotech Corp. ("Neurotech"), Enhance Resources, Inc.
   ("Enhance") and Bruce W. Lynch ("Lynch"). Artz resides in Roslyn, New
   York, and Neurotech Corp. is located in Manhasset, New York. Enhance
   is located and Lynch resides in Brookline, Massachusetts.

   In the Order, the Division of Enforcement ("Division") alleges that
   Artz and Lynch conducted a fraudulent Internet offering of notes in
   the nominal amount of $15 million, the proceeds of which were to be
   used to construct prefabricated hospitals in Turkey. The Division
   alleges that, beginning in June 1998, Artz falsely represented to
   Lynch that Neurotech had received purchase orders for five hospitals
   in Turkey. The Division further alleges that Artz falsely represented
   that three well-known Turkish banks had agreed to guarantee the notes,
   so that there would be no risk to investors that they would not
   receive repayments of principal or interest. The Division further
   alleges that Artz provided to Lynch three fake bank guarantees, which
   he claimed evidenced the banks' agreement to guarantee the notes.
   Beginning in August 1998, Lynch posted on two Internet websites that
   he created an offering of the $15 million notes. Without investigating
   whether Neurotech had received the Turkish hospital purchase orders or
   whether the three Turkish banks identified by Artz had agreed to
   guarantee the notes, Lynch attempted to solicit investors for the
   notes by publishing the false statements on the websites. In addition,
   Lynch went beyond Artz's representations by publishing revenue and
   earnings (before taxes) projections for a completed hospital of,
   respectively, $27 million and $4 million. Lynch's only basis for these
   figures was projections relating to a hypothetical, prefabricated
   hospital in Cambodia. The Division alleges that, by these activities,
   Artz, Neurotech, Enhance and Lynch violated Sections 5(c), 17(a)(1),
   and 17(a)(3) of the Securities Act of 1933.

   A public hearing will be scheduled to determine whether the
   allegations against Artz, Neurotech, Enhance and Lynch are true and,
SNIPPETS:
  • CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST LAWRENCE M. ARTZ, NEUROTECH CORP., ENHANCE
  • AND BRUCE W. LYNCH FOR FRAUDULENT INTERNET OFFERING
  • The Commission has issued an Order Instituting Cease-and-Desist
  • Proceedings and Notice of Hearing Pursuant to Section 8A of the Securities Act of 1933
  • Artz resides in Roslyn, New York, and Neurotech Corp. is located in Manhasset, New York.
  • In the Order, the Division of Enforcement alleges that Artz and Lynch conducted a fraudulent
  • The Division alleges that, beginning in June 1998, Artz falsely represented to Lynch that
  • The Division further alleges that Artz falsely represented that three well-known Turkish
  • Without investigating whether Neurotech had received the Turkish hospital purchase orders or
  • In addition, Lynch went beyond Artz's representations by publishing revenue and earnings
  • Lynch's only basis for these figures was projections relating to a hypothetical,
  • A public hearing will be scheduled to determine whether the allegations against Artz,
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