U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18105 / April 24, 2003
SEC OBTAINS SUMMARY JUDGMENT
AGAINST COMPANY'S STOCK PROMOTER
SECURITIES AND EXCHANGE COMMISSION V. GLOBAL DATATEL, INC., RICHARD BAKER,
MARIO HABIB, and STUART BOCKLER, Case No. 01-9108-CIV-RYSCAMP (S.D. Fla.).
The Securities and Exchange Commission ("SEC") announced that on April
16, 2003, United States District Court for the Southern District of
Florida entered an Order Granting SEC's Motion for Summary Judgment
and Entering Final Judgment of Permanent Injunction and Other Relief
against Defendant Stuart Bockler ("Final Judgment"). The Final
Judgment enjoins Bockler from violating Section 17(a) and 17(b) of the
Securities Act of 1933 ("Securities Act"), Section 10(b) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
thereunder, Orders Bockler to pay disgorgement in the amount of
$174,616.16, with prejudment interest in the amount $7,985.16, and
imposes a civil penalty of $110,000.
On December 26 2001, the SEC filed a complaint against Bockler and
others in connection with stock promotional activities on behalf of
Global Datatel, Inc. ("Global" or "the Company"), a company whose
common stock was quoted on the Over-the-Counter Bulletin Board. Global
hired Bockler, a public relations consultant, to disseminate reports
to the investment community about the Company in exchange for shares
of Global stock. The SEC's Complaint alleged that from January 1999
through October 1999, Bockler drafted and disseminated at least one
dozen glowing reports about Global containing baseless price
projections and making "BUY" and "STRONG BUY" recommendations while,
at the same time, selling his own shares of the Company's stock.
Moreover, Bockler never disclosed in his reports the compensation he
was paid by Global, or that he was selling his Global stock. In
granting summary judgment in favor of the SEC, Judge Kenneth Ryskamp
held that Bockler's conduct constituted a "classic case of
`scalping'," in violation of the anti-fraud and anti-touting
provisions of the federal securities laws.
Previously, on February 19, 2002, the Court entered a Judgment of
Permanent Injunction and Other Relief against Global, upon the consent
of its bankruptcy trustee. On May 6, 2002, the Court entered Judgments
of Permanent Injunction and Other Relief against Richard Baker (former
CEO of Global) and Mario Habib (president of Global's subsidiary,
eHola.com, Inc.), by their consent, enjoining them from violating
Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act
and Rule 10b-5 thereunder. Baker and Habib were ordered to pay civil
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
AGAINST COMPANY'S STOCK PROMOTER
SECURITIES AND EXCHANGE COMMISSION V. GLOBAL DATATEL, INC., RICHARD BAKER,
MARIO HABIB, and STUART BOCKLER, Case No. 01-9108-CIV-RYSCAMP (S.D.
The Securities and Exchange Commission announced that on April 16, 2003, United States
The Final Judgment enjoins Bockler from violating Section 17and 17of the Securities Act of
Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Orders Bockler to pay disgorgement
On December 26 2001, the SEC filed a complaint against Bockler and others in connection with
Global hired Bockler, a public relations consultant, to disseminate reports to the investment
The SEC's Complaint alleged that from January 1999 through October 1999, Bockler drafted and
Previously, on February 19, 2002, the Court entered a Judgment of Permanent Injunction and
On May 6, 2002, the Court entered Judgments of Permanent Injunction and Other Relief against
Baker and Habib were ordered to pay civil penalty in amounts of $25,000 and $15,000,
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