CONTINUED: SEC ID-572 (3/11/2014) IDCX REVOKED
"SANCTIONS
Under Exchange Act Section 12(j), the Commission is authorized, “as it deems necessary or
appropriate for the protection of investors,” to revoke the registration of a security or suspend for a
period not exceeding twelve months if it finds, after notice and an opportunity for hearing, that the
issuer of the security has failed to comply with any provision of the Exchange Act or rules
thereunder. In proceedings pursuant to Exchange Act Section 12(j) against issuers that violated
Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder, the determination “of what
sanctions will ensure that investors will be adequately protected . . . turns on the effect on the
investing public, including both current and prospective investors, of the issuer’s violations, on the
one hand, and the Section 12(j) sanctions, on the other hand.” Gateway Int’l Holdings, Inc.,
Exchange Act Release No. 53907 (May 31, 2006), 88 SEC Docket 430, 438-39. The Commission
“consider[s], among other things, the seriousness of the issuer’s violations, the isolated or recurrent
nature of the violations, the degree of culpability involved, the extent of the issuer’s efforts to remedy its past violations and ensure future compliance, and the credibility of its assurances, if any,
against further violations.” Id. at 439.
Respondent’s failure to file required periodic reports is serious because it violates a central
provision of the Exchange Act. The purpose of periodic reporting is to supply investors with
current and accurate financial information about an issuer so that they may make sound investment
decisions. Id. at 441. The reporting requirements are the primary tool that Congress fashioned for
the protection of investors from negligent, careless, and deliberate misrepresentations in the sale of
securities. SEC v. Beisinger Indus. Corp., 552 F.2d 15, 18 (1st Cir. 1977). Respondent’s violations
are also recurrent in that it repeatedly failed to file periodic reports. See Nature’s Sunshine Prods.,
Inc., Exchange Act Release No. 59268 (Jan. 21, 2009), 95 SEC Docket 13488, 13495 (respondent
failed to file seven required periodic reports due over a two-year period); Impax Labs., Inc.,
Exchange Act Release No. 57864 (May 23, 2008), 93 SEC Docket 6241, 6251 (respondent’s failure
to make eight filings over an eighteen-month period considered recurrent). Respondent is culpable
because it knew, or should have known, of its obligation to file periodic reports. Alternatively, it is
unnecessary to find that Respondent was aware of, or intentionally ignored, its reporting
obligations, as scienter is not necessary to establish grounds for revocation and the other factors
weigh in favor of revocation. China-Biotics, Inc., Exchange Act Release No. 70800, 2013 WL
5883342, at *10 & n.60 (Nov. 4, 2013). Finally, Respondent has not answered the OIP to address
whether it has made any efforts to remedy its past violations and has made no assurances against
further violations.
Considering these delinquencies, it is necessary and appropriate for the protection of
investors to revoke the registration of each class of registered securities of Respondent.
It is ORDERED that, pursuant to Section 12(j) of the Securities Exchange Act of 1934, the
registration of each class of registered securities of North China Horticulture, Inc., is hereby
REVOKED.
This Initial Decision shall become effective in accordance with and subject to the provisions of
Rule 360. See 17 C.F.R. § 201.360. Pursuant to that Rule, a party may file a petition for review of this
Initial Decision within twenty-one days after service of the Initial Decision. A party may also file a
motion to correct a manifest error of fact within ten days of the Initial Decision, pursuant to Rule 111.
17 C.F.R. § 201.111. If a motion to correct a manifest error of fact is filed by a party, then that party
shall have twenty-one days to file a petition for review from the date of the undersigned’s order
resolving such motion to correct a manifest error of fact.
This Initial Decision will not become final until the Commission enters an order of finality.
The Commission will enter an order of finality unless a party files a petition for review or a motion to
correct a manifest error of fact or the Commission determines on its own initiative to review the Initial
Decision as to a party. If any of these events occur, the Initial Decision shall not become final as to
that party.
Respondent is notified that it may move to set aside the default in this case. Rule 155(b)
permits the Commission, at any time, to set aside a default for good cause, in order to prevent
injustice and on such conditions as may be appropriate. 17 C.F.R. § 201.155(b). A motion to set
aside a default shall be made within a reasonable time, state the reasons for the failure to appear or
defend, and specify the nature of the proposed defense in the proceeding. Id.
_____________________
Cameron Elliot
Administrative Law Judge"
END QUOTE.
(CHECK MY ACCURACY FOR COPY SPECIFICS, AS I'M TOO BUSY NAVIGATING)
See ya in 2016!
