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SEC v WAYNE F. GORSEK, LYNDELL PARKS, et al Click to find out why . . .



Keywords & Phrases
CaseNo: LR-17352, CourtCode: DIS, CourtName: JUSTUS, U.S. DISTRICT COURT FOR THE CENTRAL DISTRICT OF ILLINOIS, C.A., Defendant: Wayne F. Gorsek, Lyndell Parks, P. Brenden Gebben and Troy Justus, Plaintiff: SEC, State: IL Illinois, UniqueCaseRef: SEC>LR-17352, Securities, Act, Exchange, Gorsek, Parks, District Court, Illinois, Defendants Gorsek, Violations, Justus, Investment, Sia, Brokerage, Commission, Judge, Springfield, Thereunder, Lyndell Parks, Troy Justus, Central District, Jury, Directs, Verdict, Fraud, Scott, Strategic Investment, Firm, Judgement, Consent , ContentID: 120252385

Case Documents
1 2002-02-05 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 127413
2 pages
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Total Documents: 1 document , 2 pages
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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
ACT
EXCHANGE
GORSEK
PARKS
COURT
DISTRICT COURT
ILLINOIS
DEFENDANTS GORSEK
VIOLATIONS
JUSTUS
INVESTMENT
SIA
BROKERAGE
COMMISSION
JUDGE
SPRINGFIELD
THEREUNDER
LYNDELL PARKS
TROY JUSTUS
CENTRAL DISTRICT
JURY
DIRECTS
VERDICT
FRAUD
SCOTT
STRATEGIC INVESTMENT
FIRM
JUDGEMENT
CONSENT
SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17352 / February 5, 2002

   SEC v. Wayne F. Gorsek, Lyndell Parks, P. Brenden Gebben and Troy
   Justus, U.S. District Court for the Central District of Illinois, C.A.
   No. 99 CV 3072 (JES)

   Jury Finds P. Brenden Gebben Liable for Unlawful Stock Touting,
   Judge Directs Verdict For the Commission against Gebben for Securities
   Fraud

   On Wednesday, January 30, 2002, after deliberating for two hours, a
   jury in the federal district court for the Central District of
   Illinois in Springfield, Illinois, found that defendant P. Brenden
   Gebben ("Gebben") violated Section 17(b) of the Securities Act of 1933
   ("Securities Act"), the anti-touting provision of the Securities Act.
   The previous day, on January 29, 2002, U.S. District Court Judge
   Jeanne E. Scott directed a verdict in the Commission's favor on its
   claim that Gebben violated Section 10(b) of the Securities Exchange
   Act of 1934 ("Exchange Act").

   Gebben was the "Lead Analyst" and "Assistant Director of Research and
   Communications" of Strategic Investment Advisory ("SIA"), a company
   based in Springfield, Illinois. The Commission's complaint alleged
   that Gebben, along with co-defendants Wayne F. Gorsek, Lyndell Parks,
   and Troy Justus, fraudulently promoted approximately 20 microcap
   companies through SIA. The Complaint alleged that SIA deceived
   investors into believing that it was an independent securities
   research firm providing objective investment advice about
   "undiscovered" companies. In fact, the SEC alleged, SIA was merely a
   paid promotional firm that uncritically published glowingly optimistic
   recommendations of the securities of its clients in exchange for cash
   and securities.

   In April 2001, Judge Scott granted the Commission's motion for summary
   judgment against defendants Gorsek and Parks and found them liable for
   violations of Section 10(b) of the Exchange Act and Rule 10b-5
   thereunder, and Section 17(b) of the Securities Act for their conduct
   at SIA. The Court will hold further proceedings on the Commission's
   claims that Gorsek and Parks defrauded their brokerage customers in
   violation of Section 17(a) of the Securities Act, and Section 10(b) of
   the Exchange Act, and Rule 10b-5 thereunder, while they were
   registered representatives and owners of Strategic Investments, Inc.,
   a Springfield, Illinois-based broker-dealer.

   The Court also previously entered a consent judgment against defendant
   Justus that permanently restrained and enjoined him from violating
SNIPPETS:
  • SECURITIES AND EXCHANGE COMMISSION
  • Jury Finds P. Brenden Gebben Liable for Unlawful Stock Touting, Judge Directs Verdict For the
  • On Wednesday, January 30, 2002, after deliberating for two hours, a jury in the federal
  • Gebben was the "Lead Analyst" and "Assistant Director of Research and Communications" of
  • The Commission's complaint alleged that Gebben, along with co-defendants Wayne F. Gorsek,
  • The Complaint alleged that SIA deceived investors into believing that it was an independent
  • In April 2001, Judge Scott granted the Commission's motion for summary judgment against
  • The Court also previously entered a consent judgment against defendant Justus that
  • After the conclusion of the brokerage fraud claims against defendants Gorsek and Parks, the
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