Securities and Exchange Commission
Washington, D.C.
Litigation Release No. 17519 / May 15, 2002
Securities and Exchange Commission v. P. Joseph Vertucci, Bruce E. Straughn,
Robert V. Petry, Roland R. Baughman, Richard M. Johnson, Edward Meyer, Jr.,
and Hazlet Investors, Inc. (Defendants), and Joanne C. Straughn (Relief
Defendant), Civil Action No. 5 99CV426 (N.D. Ohio).
SEC Announces Settlements in Scheme to Pump-and-Dump Stock of Interactive
Multimedia Publishers, Inc.
On May 15, 2002, the Securities and Exchange Commission filed a
consent by Edward Meyer, Jr. and Meyer's now-defunct corporate
alter-ego, Hazlet Investors, Inc. to the entry of a final judgment
against them for their involvement in a 1996 scheme to pump and dump
the stock of Interactive Multimedia Publishers, Inc. ("IMP"), an
Akron, Ohio software development firm that is now defunct. Meyer and
Hazlet Investors consented to permanent injunctions against violations
of the registration, antifraud and antitouting provisions of the
federal securities laws (Sections 5(a), 5(c) and 17(b) of the
Securities Act of 1933 ("Securities Act") and Section 10(b) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
thereunder). Meyer and Hazlet Investors agreed to disgorgement of
$75,000 in stock sale proceeds. On the basis of their representations
in sworn financial statements and other documents and information
furnished to the Commission, payment of additional disgorgement by
Meyer and Hazlet Investors was waived and civil penalties were not
imposed.
The Commission instituted an administrative proceeding against
defendant Bruce Straughn, a former stockbroker with the Chicago office
of La Jolla Capital Corporation, based on allegations that he helped
orchestrate the fraudulent scheme. Straughn consented to the issuance
of a Commission Order requiring him to cease and desist from
committing or causing violations of the registration and antifraud
provisions, Sections 5(a), 5(c) and 17(a) of the Securities Act and
Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. For
further information on the cease-and-desist proceeding, Exchange Act .
On the basis of the representations of Straughn and his wife in their
sworn financial statements and other documents and information
furnished to the Commission, civil penalties were not imposed and
payment of disgorgement by Straughn was waived. In his consent to the
issuance of the cease-and-desist order, Straughn waived any right he
may have to appeal or to seek relief from an Order Making Findings and
Imposing Sanction by Default that barred Straughn from association
with any broker or dealer, pursuant to Section 15(b)(6) of the
SNIPPETS:
Securities and Exchange Commission
SEC Announces Settlements in Scheme to Pump-and-Dump Stock of Interactive Multimedia
On May 15, 2002, the Securities and Exchange Commission filed a consent by Edward Meyer, Jr.
and Meyer's now-defunct corporate alter-ego, Hazlet Investors, Inc. to the entry of a final
Meyer and Hazlet Investors consented to permanent injunctions against violations of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder).
On the basis of their representations in sworn financial statements and other documents and
The Commission instituted an administrative proceeding against defendant Bruce Straughn, a
Straughn consented to the issuance of a Commission Order requiring him to cease and desist
In his consent to the issuance of the cease-and-desist order, Straughn waived any right he
On May 15, 2002, the Commission filed a stipulation for dismissal of the civil complaint
On January 22, 2002, the Honorable Dan Aaron Polster, United States District Judge for the
Judge Polster also filed a consent judgment as to defendant Raleigh R. Baughman, permanently
This enforcement action was part of the Commission's four-pronged approach to minimizing
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