UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 42261 / December 21, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-10064
___________________________________
In the Matter of
ORDER MAKING FINDINGS AND
FRANK GAINES and IMPOSING REMEDIAL SANCTIONS
TAFT WOMACK BY DEFAULT
___________________________________
The Securities and Exchange Commission (Commission) initiated this
proceeding on September 30, 1999, by an Order Instituting Proceedings
(OIP), pursuant to Section 15(b) the Securities Exchange Act of 1934
(Exchange Act).
The OIP was served on Respondent Taft Womack (Womack) on October 5,
1999. Respondent Frank Gaines (Gaines) was served on November 5, 1999.
By the terms of the OIP and Rule 220(b) of the Commission's Rules of
Practice, 17 C.F.R. § 201.220(b), Respondents' Answers were due twenty
days after service of the OIP. To date, neither has filed an Answer or
other responsive pleading in this matter.
Pursuant to Rules 155(a)(2) and 220(f), a respondent that fails to
file an Answer to the OIP or otherwise defend the proceeding may be
deemed to be in default. The administrative law judge may determine
the proceeding against the respondent upon consideration of the
record, including the OIP, the allegations of which may be deemed to
be true. On November 2, I ordered Womack to show cause, within fifteen
days, why he should not be held in default and why I should not impose
the remedies the Division of Enforcement (Division) requested. No
Answer or other responsive pleadings were received from Womack. On
December 1, 1999, the Division filed a Motion for Default against
Gaines. As with Womack, no Answer or other responsive pleadings were
received from Gaines.
Womack and Gaines are in default within the meaning of Rule 155(a).
Both failed to answer the OIP and have not otherwise defended the
proceeding. Rules 155(a)(2) and 220(f). Accordingly, I find that the
allegations in the OIP are true
A. During the period from at least 1994 through 1997, Gaines was not
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
ADMINISTRATIVE PROCEEDING
The Securities and Exchange Commission initiated this proceeding on September 30, 1999, by an
The OIP was served on Respondent Taft Womack on October 5,
Respondent Frank Gaines was served on November 5,
Pursuant to Rules 155and 220, a respondent that fails to file an Answer to the OIP or
The administrative law judge may determine the proceeding against the respondent upon
no Answer or other responsive pleadings were received from Gaines.
During all relevant times, Gaines effected transactions in, or induced or attempted to induce
Gaines, Womack, and others offered and sold $3.3 million of International Capital Corporation
Neither Gaines nor Womack were registered with the Commission pursuant to Section 15of the
Gaines and Womack represented to investors that their funds were pooled in bank accounts and
Gaines and Womack misrepresented to investors i) that ICC 2000 investment contracts were
E. Based on the conduct described above, Gaines and Womack willfully violated Sections 5and
to sell or offer to buy through the use or medium of any prospectus or otherwise, as described
Based on the conduct described above, Gaines and Womack willfully violated Sections 17and
light of the circumstances under which they were made, not misleading; and/or ii) engaged in
H. Based on the conduct described above, Gaines and Womack willfully violated Section 10of
d to state material facts necessary in order to make the statements made, in light of the
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