SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17953 / January 28, 2003
JUDGE FINDS WAYNE F. GORSEK AND LYNDELL PARKS LIABLE OF SECURITIES
FRAUD AND PERMANENTLY ENJOINS THEM FROM FUTURE VIOLATIONS; COURT
IMPOSES ADDITIONAL SANCTIONS AGAINST GORSEK, PARKS AND P. BRENDEN
GEBBEN; COMMISSION BARS GORSEK AND PARKS FROM ASSOCIATION WITH
REGISTERED BROKER DEALERS
, U.S. District Court for the Central District of Illinois, C.A. No.
99 CV 3072 (JES)
The Commission announced today that the Honorable Jeanne E. Scott,
U.S. District Judge for the Central District of Illinois, has found
two former brokers and stock promoters, Wayne F. Gorsek ("Gorsek") and
Lyndell F. Parks ("Parks") liable for violating the antifraud
provisions of the federal securities laws and has enjoined them from
further violations of Sections 17(a) and (b) of the Securities Act of
1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act
of 1934 ("Exchange Act") and Exchange Act Rule 10b-5. Judge Scott also
imposed additional sanctions against defendants Gorsek, Parks and P.
Brenden Gebben ("Gebben"), as set forth below.
In a related proceeding, the Commission barred Gorsek and Parks from
associating with a registered broker-dealer. Gorsek and Parks
consented to the entry of the Commission's order barring them from
association with any broker or dealer, without admitting or denying
the Commission's findings against them.
The Commission's Complaint, filed on January 7, 1999, alleged that
defendants Gorsek, Parks, P. Brenden Gebben ("Gebben") and Troy Justus
("Justus") fraudulently promoted approximately 20 microcap companies
through Strategic Investment Advisory, Inc. ("SIA"), a Springfield,
Illinois-based company, in exchange for cash and securities. The
Complaint alleged SIA deceived investors into believing that it was an
independent securities research firm providing objective investment
advice about "undiscovered" companies when, in fact, 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.
The Complaint further alleged that at the same time defendants Gorsek
and Parks engineered SIA's promotional scheme, they were co-owners and
registered representatives at Strategic Investments, Inc. ("SII") (a
broker-dealer). The Complaint alleged that as registered
representatives at SII, Gorsek and Parks defrauded brokerage customers
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
JUDGE FINDS WAYNE F. GORSEK AND LYNDELL PARKS LIABLE OF SECURITIES FRAUD AND PERMANENTLY
, U.S. District Court for the Central District of Illinois, C.A.
Judge Scott also imposed additional sanctions against defendants Gorsek, Parks and P. Brenden
Gorsek and Parks consented to the entry of the Commission's order barring them from
The Complaint alleged SIA deceived investors into believing that it was an independent
On April 21, 2001, Judge Scott entered an Order granting the Commission's motion for partial
In January 2002, Gebben, who held the titles of "Lead Analyst" and "Assistant Director of
Moreover, at the close of evidence at trial, the Court directed a verdict in the Commission's
The April 17, 2002, Order reserved for a subsequent remedy hearing the issue of the amount
On August 19, 2002, Judge Scott entered a Final Judgment of Permanent Injunction and Other
The Court's Order enjoined Gorsek from further violations of Sections 17and of the Securities
broker, dealer or issuer for purposes of the issuance or trading in any penny stock, for a period
The Court's Order against Gorsek was based on the fraud findings set forth in the Court's
The Court ordered Parks to pay $105,000 in disgorgement of ill-gotten gains, pre-judgment
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