SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 17552 /June 10, 2002
SECURITIES AND EXCHANGE COMMISSION v. BRIAN M. VOLMER, JOHN R.
SWITZER, INTERNATIONAL ALLIANCE TRADING, INC., SUN PACIFIC CAPITAL
GROUP, INC., Defendants, and LISA NEWMAN VOLMER, Relief Defendant,
United States District Court for the Central District of California,
No. CV 98-8698-JSL (Mcx)
SECURITIES AND EXCHANGE COMMISSION v. BRIAN M. VOLMER, INTERNATIONAL
ALLIANCE TRADING, INC., SUN PACIFIC CAPITAL GROUP, INC.,
Defendants/Appellants, and LISA NEWMAN VOLMER, Relief
Defendant/Appellant, United States Court of Appeals for the Ninth
Circuit, No. 00-57045
On May 3, 2002 the U.S. Court of Appeals for the Ninth Circuit, in an
unpublished opinion, affirmed a judgment against Brian M. Volmer and
two corporate entities he controlled, International Alliance Trading,
Inc. ("International Alliance") and Sun Pacific Capital Group, Inc.,
that was entered by the Hon. J. Spencer Letts of the U.S. District
Court for the Central District of California on October 18, 2000.
After a bench trial, Judge Letts found Volmer and his two companies
liable for touting the stock of two issuers on the internet without
disclosing the compensation they received from the issuer for doing
so, in violation of the anti-touting provision of the securities laws
(Section 17(b) of the Securities Act of 1933 ("Securities Act")). The
District Court also found that in an advertisement they placed in a
nationally distributed newspaper Volmer and International Alliance
violated the antifraud provisions of the securities laws (Section
17(a) of the Securities Act and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder) by misidentifying the
author of the ad, misrepresenting the assets of the issuer promoted in
the ad, and falsely recommending the stock as a good buy.
The judgment enjoins Volmer and his two companies from further
violations of the anti-touting provision and enjoins Volmer and
International Alliance from violating the antifraud provisions. It
also orders Volmer to disgorge $296,429.13 in illicit proceeds (both
his compensation and trading profits), and imposes a civil penalty
against him in the same amount. Volmer's wife, Lisa Newman Volmer, who
was named in the Commission's complaint as a relief defendant, was
ordered to disgorge $106,646 she received from Volmer, if he fails to
satisfy the disgorgement judgment. The Court of Appeals affirmed the
judgment of the District Court in all respects.
Another defendant in the case, John R. Switzer, previously consented
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
GROUP, INC., Defendants, and LISA NEWMAN VOLMER, Relief Defendant, United States District
SECURITIES AND EXCHANGE COMMISSION v. BRIAN M. VOLMER,
ALLIANCE TRADING, INC., SUN PACIFIC CAPITAL GROUP, INC.,
Defendants/Appellants, and LISA NEWMAN VOLMER, Relief Defendant/Appellant, United States
On May 3, 2002 the U.S. Court of Appeals for the Ninth Circuit, in an unpublished opinion,
After a bench trial, Judge Letts found Volmer and his two companies liable for touting the
The District Court also found that in an advertisement they placed in a nationally
The judgment enjoins Volmer and his two companies from further violations of the anti-touting
It also orders Volmer to disgorge $296,429.13 in illicit proceeds, and imposes a civil
Volmer's wife, Lisa Newman Volmer, who was named in the Commission's complaint as a relief
Another defendant in the case, John R. Switzer, previously consented to the entry of a final
The consent judgment against Switzer, which was entered on February 11, 2000, did not impose
Investors are advised to read the SEC's "Cyberspace" Alert before purchasing any investment
A user-friendly form to assist you in making a report is available at the Enforcement
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