Securities and Exchange Commission
Litigation Release No. 17640 / July 31, 2002
Securities and Exchange Commission v. Robert N. Rooks, John W. Duffell III,
and Charles E. Yost II Civil Action No. EDCV 01-846 (SGLx) (Central District
of California, Eastern Division)
CEO ENJOINED AND ORDERED TO PAY $100,000 PENALTY FOR SECURITIES FRAUD
Recidivist Securities Law Violator also liable for violating securities
registration provisions
The Securities and Exchange Commission announced today that Robert N.
Rooks, former CEO of JDMC Global Corp., was found liable for
securities fraud by a Los Angeles federal court. On July 29, 2002, the
United States District Court for the Central District of California
entered a final judgment against Rooks, a resident of Malibu,
California, age 57, permanently enjoining him from future violations
of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder, and ordering him to pay a $100,000 third tier civil
penalty. The Court found that in 1996 Rooks disseminated false and
misleading information about JDMC Global's financial condition and a
supposed South African housing project. The Court found that Rooks'
false and misleading information caused JDMC Global's stock price to
skyrocket from $.13 to $4, or more than 3,000%, during June through
September 1996. At the time of Rooks' fraud, JDMC Global was a
publicly-traded company based in Los Angeles, California that
purportedly engaged in mining, construction, and entertainment.
The Court also found that John W. Duffell, JDMC Global's stock
promoter and a repeat securities law offender, violated the securities
registration provisions of the federal securities laws, Sections 5(a)
and 5(c) of the Securities Act of 1933. Duffell, an American living in
France, age 52, promoted JDMC Global's unregistered stock and directed
the company's sales efforts in the United States. The Court will
decide in later proceedings the appropriate remedies against Duffell,
including the amount of disgorgement and civil penalties and whether
to issue an injunction for violating the federal securities
registration provisions.
In September 1996, the Commission suspended trading in the stock of
JDMC Global, whose stock was traded on the Over-The-Counter Bulletin
Board. (See Lit. Release No. 34-37681, September 16, 1996.) In May
2000, the SEC sued Rooks, Duffell and Charles E. Yost, another stock
promoter, for fraudulently selling unregistered stock of JDMC Global.
(See Lit. Release No. 16550, May 12, 2000.) The trial against Duffell
and Yost for federal securities fraud is set for December 3, 2002.
SNIPPETS:
Securities and Exchange Commission
CEO ENJOINED AND ORDERED TO PAY $100,000 PENALTY FOR SECURITIES FRAUD
The Securities and Exchange Commission announced today that Robert N. Rooks, former CEO of
On July 29, 2002, the United States District Court for the Central District of California
The Court found that in 1996 Rooks disseminated false and misleading information about JDMC
The Court found that Rooks' false and misleading information caused JDMC Global's stock price
At the time of Rooks' fraud, JDMC Global was a publicly-traded company based in Los Angeles,
The Court also found that John W. Duffell, JDMC Global's stock promoter and a repeat
Duffell, an American living in France, age 52, promoted JDMC Global's unregistered stock and
The Court will decide in later proceedings the appropriate remedies against Duffell,
In September 1996, the Commission suspended trading in the stock of JDMC Global, whose stock
(See Lit.
In May 2000, the SEC sued Rooks, Duffell and Charles E. Yost, another stock promoter, for
In 1979, in another SEC action, the United States District Court for the Central District of
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