 |
 |
|
|
|
|
|
|
|
| | | |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1
.
SEC ADMINISTRATIVE PROCEEDING
|
EXTRACTED KEY WORDS
SECURITIES EXCHANGE ACT FERRAS EXCHANGE COMMISSION ADMINISTRATIVE PROCEEDING HGI DISTRICT COURT MATTER SHANE FERRAS INSTITUTING PURSUANT REGISTERED REPRESENTATIVES PERMANENT FRAUDULENT SALES PRACTICES EXECUTING CUSTOMERS ADMINISTRATIVE LAW JUDGE ALLEGATIONS THEREUNDER ORDERING FERRAS DISGORGE CONSISTING ILL-GOTTEN GAINS PLUS GAINS PLUS PREJUDGMENT IMPOSING CIVIL PENALTY DLC DISPUTE REMEDIAL SANCTIONS |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES EXCHANGE ACT OF 1934
Release No. 48567 / September 30, 2003
ADMINISTRATIVE PROCEEDING
File No. 3-11283
In the Matter of Shane Ferras
The Securities and Exchange Commission ("Commission") announced today
that it issued an Order Instituting Administrative Proceedings
Pursuant to Section 15(b) of the Securities Exchange Act of 1934
("Order") against Shane Ferras ("Ferras"), a former registered
representative of HGI, Inc. ("HGI") and a resident of Brantford,
Ontario, Canada. In the Order, the Division of Enforcement alleges
that the United States District Court for the Southern District of New
York has issued a permanent injunction against Ferras and found him
liable for defrauding investors by using fraudulent boiler-room sales
practices and training other HGI registered representatives to use
these fraudulent sales practices, including inducing his clients to
purchase highly speculative securities in initial public offerings
underwritten by HGI, executing unauthorized transactions in his
customers' accounts, and failing to execute sell orders placed by his
customers.
The Commission instituted this administrative proceeding after the
District Court entered a Judgment by Default against Ferras (1)
permanently enjoining him from future violations of Section 17(a) of
the Securities Act of 1933, Section 10(b) of the Securities Exchange
Act of 1934 and Rule 10b-5 thereunder; (2) ordering Ferras to disgorge
$2,346,474, consisting of $1,525,127 in ill-gotten gains plus
prejudgment interest of $821,347; and (3) imposing a civil penalty of
$10,000. (Securities and Exchange Commission v. HGI, Inc., et al., 99
Civ. 3866 (DLC) (S.D.N.Y.)).
A hearing will be scheduled before an administrative law judge to
determine whether the allegations contained in the Order are true, to
provide Ferras an opportunity to dispute these allegations, and to
determine what, if any, remedial sanctions against Ferras are
appropriate and in the public interest pursuant to Section 15(b) of
the Securities Exchange Act of 1934.
The Commission directed that an Administrative Law Judge shall issue
an initial decision in this matter within 210 days from the date of
service of the Order.
_________________________________________________________________
SNIPPETS:
|
|
|
| | | |
|
|
