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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION RUBINA KHAN RAFI KHAN SECURITIES INVESTIGATING BROKERAGE VIOLATE EXCHANGE COMMISSION DISTRICT COURT SUBPOENA BROKERAGE ACCOUNT ALLEGES FEDERAL SECURITIES LAWS MANIPULATION ENFORCE WIFE PRIOR ANTIFRAUD PROVISIONS DEALER SECURITIES LAWS RELATING ALLEGATIONS MARKET MANIPULATION STOCK PRICE VARIETY MANIPULATIVE PRACTICES COMMISSION ORDER BARRING ASSOCIATING VALID JUSTIFICATION FAILING |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17453 / April 2, 2002
SECURITIES AND EXCHANGE COMMISSION v. RUBINA KHAN (Case No. CV
02-02666 FMC) (CTx) (C.D. Cal.)
On April 1, 2002, the Securities and Exchange Commission filed an
application with the United States District Court for the Central
District of California for an order to enforce an investigative
subpoena served on Rubina Khan. Rubina Khan is the wife of Rafi Khan,
who was a defendant in a prior Commission enforcement action. The
subpoena sought testimony from Rubina Khan regarding, among other
things, transactions in a bank account and brokerage account in her
name.
The Commission's application alleges that the information sought from
Rubina Khan is directly relevant to a new Commission investigation
involving whether Rafi Khan has violated the terms of a prior
injunction or Commission bar order, and whether Rafi Khan and others
have violated, or are about to violate, certain registration,
disclosure, and antifraud provisions of the federal securities laws.
The Commission is investigating, among other things, whether Rafi
Khan, in performing various services for four public companies, has
acted as an unregistered broker or dealer or engaged in fraud in
connection with writing and disseminating promotional buy
recommendations on each company. The Commission is also investigating
whether Rafi Khan may be using a brokerage account held in the name of
his wife, Rubina Khan, to conceal his activities.
In April 2000, Rafi Khan consented to the entry of a federal district
court order permanently enjoining him from violating certain antifraud
provisions of the federal securities laws relating to allegations of
market manipulation. The Commission alleged, among other things, that
Khan manipulated the stock price of two companies using a variety of
manipulative practices. In May 2000, Rafi Khan consented to a
Commission order barring him from associating with any broker or
dealer, with the right to reapply after five years.
The Commission's application alleges that Rubina Khan has failed to
comply with a subpoena legally issued by the Commission, and that she
has no valid justification for failing to comply. A hearing on the
Commission's application has not yet been scheduled.
_________________________________________________________________
Modified 04/02/2002
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