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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
SECURITIES COMMISSION ALLEGES COMPLAINT SECURITIES EXCHANGE ACT ADMINISTRATIVE PROCEEDING WALDRON DISTRICT COURT STOCK ARTIFICIAL DEMAND INSTITUTING CERY PRICE CONTROLLING CUSTOMER ALLEGATIONS ACCOUNTS MISLEADING PRESS ACTING MARKET MAKER FIRM RAISE ECONOMIC JUSTIFICATION EVIDENCE AFFORD RESPONDENT DEFENSE THERETO PURPOSE REMEDIAL ACTION |
SECURITIES EXCHANGE ACT OF 1934
Release No. 41807 / August 30, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9991
ADMINISTRATIVE PROCEEDING INSTITUTED AGAINST CERY B. PERLE
The Securities and Exchange Commission ("Commission") announced that
it issued an Order Instituting Public Administrative Proceeding
("Order") against Cery B. Perle ("Perle"), the former president of
Waldron & Co., Inc. ("Waldron"), a now defunct broker-dealer formerly
registered with the Commission. The Commission's Order alleges that
Perle was enjoined by a United States District Court from future
violations of Section 17(a) of the Securities Act of 1933 and Sections
10(b) and 15(c)(1) of the Securities Exchange Act of 1934 and Rules
10b-5 and 15c1-2 thereunder, and that the court also imposed $110,000
in civil penalties against Perle.
In its complaint in the District Court action, the Commission alleged
that between November 25, 1997 and March 23, 1998, Perle and Waldron
manipulated the stock of the Corona del Mar, California Internet
retailer, Shopping.com, artificially raising the price of the security
from its IPO price of $9.00 to more than $32.00 a share. According to
the complaint, Perle manipulated Shopping.com's stock by controlling
the supply for the security and creating artificial demand. In
controlling the supply, the complaint alleged, Perle, among other
things, engaged in unauthorized transactions, refused customer sell
orders and parked stock in customers' accounts. To create artificial
demand, the complaint alleged that Perle issued a false and misleading
press release, and while Waldron was acting as a market maker, caused
the firm to raise the bid for the security without economic
justification.
A hearing will be scheduled to take evidence on the staff's
allegations and to afford the Respondent an opportunity to present any
defense thereto. The purpose of the hearing is to determine whether
the allegations are true and whether any remedial action should be
ordered by the Commission.
>
_________________________________________________________________
Modified 09/24/1999
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