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Dawg
Im under the impession in the greys it has to be a all or none. (sitting here watching the grass grow. We need rain/news)
garth
No matter what the price
Drop during the day it always seems to come back to .01
Thats what i have though Amer Trade it took awhile to get things going today
Did we get halted again I show no trades as of yet! Ok here we go slow start
Outstanding Shares: 198,155,262 as of 2002-11-26
Estimated Market Cap: Not Available
Current Capital Change:
shs decreased by 1 for 15 split
Ex-Date:
Record Date:
Pay Date: 2003-02-07
Previous post ssty
20 05 years 08 months on 04th
The science and technology (Beijing) the limited company officially has been established
--------------------------------------------------------------------------------
On July 29th, science and technology (Asia) limited company (Sure Trace Asia Limited Co.) Will transport the Ze letter science and technology limited company with the Beijing Xin grandly holds joint venture's signing ceremony in Beijing, the bilateral joint capital establishment science and technology (Beijing) the limited company registers to the near future in Beijing finished.
The science and technology (Asia) the limited company takes the American SSTY Corporation controls the share company, mainly devotes to is engaged in the whole world in the Asian area goes against the level security technology the promoted work. Since November, 2004, has been impels Synthetic DNA (element mark), GEOTRACK (global trace news), IDOLOGY (status authentication) and SOLAR (solar energy) and so on the technology in mainland China and the Hong Kong and Macao area promoted application and the commercial operation, the science and technology (Asia) the limited company and the Beijing Xin transports the Ze letter science and technology limited company establishes the strategic partner relations.
Both sides will display respectively in aspect the and so on fund, technology and social resources superiority, will use the cooperation management the pattern, will establish one Chinese and foreign joint capital enterprise. Joint venture's goal market locates to domestic guards against false domain and so on recognition, new energy and information technology, and builds the item operation system through the introduction overseas advanced technology, the realization resources disposition, the market development and the investment income maximization. While promotes Chinese science and technology horizontal development, moves towards the world, face the future, even better will repay the society.
The joint venture fully will depend upon the domestic unique industrial policy and the tax policy support and uses it grinds in the technology sends, aspect the and so on market promotion, government communication superiority, widely jointly will have the profession resources the partner, the display domestically stockpiles, aspect the and so on information exchange, equipment purchase in the talented person convenient condition, the establishment cooperation development operation pattern.
Joint venture's finally development goal, is establishes one set includes " grinds sends, the business, the production, the sale, the operation and the service " in the inside integrity industrial chain link, thus the establishment company takes the domestic outstanding high tech enterprise represents brand image.
The joint venture host pushes Synthetic DNA is one kind of international leading high end technology, has the distinctive quality, the reliability and may not the vicarious characteristic. It is using the contemporary most advanced element mark technology, the element mark knowledge reads technical and the backstage database management technology, through the chemical substance which will compound applies in each kind of product and the property, will achieve product marking, the product will guard against false, the product information track and the property is safe security and so on the goal. The people call it " the man-made gene ", " product DNA " or " hides oneself 条形码 ".
This technical application may help the enterprise effectively to carry on the product guards against false and prevents the property drain, the greatest degree maintenance enterprise's own benefit and the protection enterprise has intellectual property rights. This technical application is already advantageous to the enterprise, the profession management and the management, also is advantageous to the national administrative organ's law enforcement work, to maintains the national economy health, benignly the development and the protection enterprise and consumer's legitimate rights and interests all has the vital significance, simultaneously also pretended for the attack spuriously provides the most powerful technical support and the basis.
At present, joint venture's preparatory work basically has completed, and on the correlation technology in the tobacco, the automobile, food, the medicine, Austria transported and so on the domain application question already carries on the communication and the proof in the related profession and the department.
(Week Wei Zeng Yi)
OT hookem's
WOW thats pretty harsh words. I agree with the post early, SSTY looks good to run next week. IMO
Garth
5_bagger
If you are so against this company, And you don't invest in it. Then why the post? What are they for? Are you protecting us. Is that a spidey mask you were in your pocket. Just tell me the reason out of so many stocks why have you got a bug on for this one. Did Matt or Moodey steal your mother from your father and now a divorce is in the works. Just answer why the conern. Spider5
Garth
OT NEWS
I know alot of people are into SSTY on this board. this will be the next jump imo
Aug 18, 2005 (AsiaPulse via COMTEX) -- (Full text of a statement. Contact details below.)
BEIJING--(BUSINESS WIRE)--Aug. 17, 2005--Sure Trace Security Corporation (OTC:SSTY) announced that it has today participated in a public demonstration of its anti-counterfeiting technologies in Beijing, China. In attendance were over fifty persons, including representatives of National and Regional Government departments, including Military, Customs and Civilian Services, licensee of the 2008 Beijing Olympic Organizing Committee, brand manufacturers, including cigarette, pharmaceutical, as well as Chinese regional and national media.
The demonstration was put on by Sure Trace's 85% subsidiary, Sure Trace Asia Limited (STA), and Beijing Suneray Zexin Technology Limited (Suneray), the co-owners of a joint venture recently approved by the Chinese Government to commercialize Sure Trace's anti-counterfeiting technologies in China.
The demo was videotaped by Chinese television and is intended to be broadcast at a later date. Those segments will be posted on the Company's website when available; however, the Company also videotaped the demonstration and its footage should be available on the Company's website later today.
Mr. Li Ning, General Manager of Suneray, stated in his opening remarks at today's demonstration: "Through the course of our due diligence into a wide variety of anti-counterfeiting technologies available globally, we selected SSTY as it is not merely the 'best of breed' in terms of product but rather a full service solution. SSTY deals with the heart of counterfeiting and at the same time will create thousands of jobs within China, will return many millions of dollars back to the owners of brand name goods, as well as generate tax revenue to the Government that will benefit the People of China."
William Chan, CEO of SSTY and STA stated: "This was a great success today. Working with Suneray for the past several months, we have had the opportunity to meet many possible clients while at the same time working with Government organizations to gain national approval of our products and techniques. I am very proud of our own people who have worked very hard to deliver our technology to China in a fashion that has met the cultural, ethical, and economic needs of China. The solution that the Joint Venture we presented to the People of China today creates a tremendous springboard opportunity for us to create similar joint venture partnerships in other parts of Asia."
Mr. Jim MacKay, Chairman of SSTY said: "We have worked very hard for this day and the result has been fantastic. The turnout for our presentation was very good, which indicates to me that our Joint Venture Partnership is off to an excellent start. In my opinion, Suneray, working together with Sure Trace Asia and our own SSTY employees, have done a wonderful job in building a provable anti-counterfeit solution acceptable to the Chinese Government that can be expanded to the rest of the world. A very exciting part of Suneray's Government mandate is that, potentially, every single consumer good produced for both domestic consumption as well as export goods will be marked with a True Product I.D. I am confident that today marks a significant step forward in the business growth of SSTY."
As part of its roll out of products and services in China, SSTY, together with its joint venture partners, determined that the new name for its technology is "True Product I.D." Over the course of the next few weeks, SSTY intends to update its web site to promote True Product I.D.
About Sure Trace Security Corporation
Sure Trace produces integrators for anti-counterfeiting and security surveillance applications and is a provider of integrated tracking devices. The Company intends to deliver turnkey solutions for governments, armed forces, and industry, through its own proprietary technology and through aggregating the technology, products, and services of third parties via licensing agreements and or joint ventures. For more information go to: www.suretrace.com.
The stock of Sure Trace has recently been suspended by the Securities and Exchange Commission, but the suspension has ended by its own terms. Management of Sure Trace is currently working with the broker-dealer community and regulators to permit quotations to be entered on the Pink Sheets as soon as possible. More information will be provided to the public when circumstances warrant
NEWS
Aug 18, 2005 (AsiaPulse via COMTEX) -- (Full text of a statement. Contact details below.)
BEIJING--(BUSINESS WIRE)--Aug. 17, 2005--Sure Trace Security Corporation (OTC:SSTY) announced that it has today participated in a public demonstration of its anti-counterfeiting technologies in Beijing, China. In attendance were over fifty persons, including representatives of National and Regional Government departments, including Military, Customs and Civilian Services, licensee of the 2008 Beijing Olympic Organizing Committee, brand manufacturers, including cigarette, pharmaceutical, as well as Chinese regional and national media.
The demonstration was put on by Sure Trace's 85% subsidiary, Sure Trace Asia Limited (STA), and Beijing Suneray Zexin Technology Limited (Suneray), the co-owners of a joint venture recently approved by the Chinese Government to commercialize Sure Trace's anti-counterfeiting technologies in China.
The demo was videotaped by Chinese television and is intended to be broadcast at a later date. Those segments will be posted on the Company's website when available; however, the Company also videotaped the demonstration and its footage should be available on the Company's website later today.
Mr. Li Ning, General Manager of Suneray, stated in his opening remarks at today's demonstration: "Through the course of our due diligence into a wide variety of anti-counterfeiting technologies available globally, we selected SSTY as it is not merely the 'best of breed' in terms of product but rather a full service solution. SSTY deals with the heart of counterfeiting and at the same time will create thousands of jobs within China, will return many millions of dollars back to the owners of brand name goods, as well as generate tax revenue to the Government that will benefit the People of China."
William Chan, CEO of SSTY and STA stated: "This was a great success today. Working with Suneray for the past several months, we have had the opportunity to meet many possible clients while at the same time working with Government organizations to gain national approval of our products and techniques. I am very proud of our own people who have worked very hard to deliver our technology to China in a fashion that has met the cultural, ethical, and economic needs of China. The solution that the Joint Venture we presented to the People of China today creates a tremendous springboard opportunity for us to create similar joint venture partnerships in other parts of Asia."
Mr. Jim MacKay, Chairman of SSTY said: "We have worked very hard for this day and the result has been fantastic. The turnout for our presentation was very good, which indicates to me that our Joint Venture Partnership is off to an excellent start. In my opinion, Suneray, working together with Sure Trace Asia and our own SSTY employees, have done a wonderful job in building a provable anti-counterfeit solution acceptable to the Chinese Government that can be expanded to the rest of the world. A very exciting part of Suneray's Government mandate is that, potentially, every single consumer good produced for both domestic consumption as well as export goods will be marked with a True Product I.D. I am confident that today marks a significant step forward in the business growth of SSTY."
As part of its roll out of products and services in China, SSTY, together with its joint venture partners, determined that the new name for its technology is "True Product I.D." Over the course of the next few weeks, SSTY intends to update its web site to promote True Product I.D.
About Sure Trace Security Corporation
Sure Trace produces integrators for anti-counterfeiting and security surveillance applications and is a provider of integrated tracking devices. The Company intends to deliver turnkey solutions for governments, armed forces, and industry, through its own proprietary technology and through aggregating the technology, products, and services of third parties via licensing agreements and or joint ventures. For more information go to: www.suretrace.com.
The stock of Sure Trace has recently been suspended by the Securities and Exchange Commission, but the suspension has ended by its own terms. Management of Sure Trace is currently working with the broker-dealer community and regulators to permit quotations to be entered on the Pink Sheets as soon as possible. More information will be provided to the public when circumstances warrant
Problem is scumbags like 5bagger plead and cry like a baby when they are contacted... But I have not given up And will countiue to follow all 5 baggers post and make it my bussiness to see a apology come from his thick head..
Some companies are already monitoring the stock-chat message boards. This function is likely to be performed by the investor relations department.
In one case, the secretary/treasurer of a relatively small publicly traded retailer claimed to spend 30 minutes to one hour, daily, monitoring only YF for his firm's stock. He said his motivation was to identify disgruntled employees or ex-employees, and his efforts had identified the posts of six of them. Only one required some form of legal threat/action by the firm's management.
Others are paying companies specializing in this service to manipulate the trend of conversation on these boards or to notify the firm of cybersmear. Often these are public relations firms, and they offer additional services. Some claim to be able to increase the positive messages and decrease the negative messages by significant amounts. (See sidebar below for services.)
Once you've identified negative postings, the process for identifying the alias is expensive. Generally, a firm must file what is known as a John Doe suit. The cost of identifying the party posting negative messages can easily range from $15,000 to $25,000 for this first step. A few firms have, instead, hired private investigators, which may be less expensive.
In the case of YF, for example, the alias would be notified of the suit and given two weeks to file a motion to quash or prevent further efforts to disclose poster identities before YF releases registration data to the firm. Because filing these documents is also expensive, some defendants choose to settle the matter quickly, usually by posting an apology on the same message board where the damaging posts appeared.
Stop yawning and wake up ass
The two men could face between 10 and 20 years in prison. Some are predicting 5-7 year sentences for each. Prosecutors said Elgindy bet against stocks and drove down their prices by publicizing damaging information he received from Royer and others (some true and some questionable).
All in All It was weird but decent day would you call this. MM's covering, I really don't know what you would call it?
Any suggestions
Garth
No though Ameritrade
IT just filled my order
53750 SSTY Limit at 0.016, DAY Filled 53750 at 0.015
How are you trying to buy it? I have even put in a order of 50,000 @ .016 hasn't filled it
I guess not I have a buy in but not filling
Banks it is correct . Im looking at it right now on my account
SURE TRACE SEC CORP COM (SSTY)
Bid 0.0042 Ask 0.0049 Last 0.0001
Open 0.0139 Close 0.0139 Change -0.0138
High 0.0139 Low 0.0001 % Change -99.28
Volume 401800 Last Size 350000 B/A Size 5000X5000
Last Trade Wed Aug 17 2005 09:41:57
Asset Type Equity
P/E -0.10 52 Wk. High 0.13 52 Wk. Low 0.0001
Quote Type Real-Time Exchange OTC
Dividends
Amount 0.00 Yield 0.00 Ex-Div Date
Quote as of: Wed Aug 17 2005 9:56:32 AM EDT
0.0001 is the current price according to ameritrade 350000 shares was the only trade so far at that price. They are up and trading
GLTA
GARTH
Everybody let 5bagger do his thing There are laws in that reframe him from posting untrue statements. I have copied and paste these post by him and sent them to Matt and To Hisc, If there is any wrong doing on his part he will face the questions. He has impilcated IMX as a source. Let it be. There are more then one way to skin a cat.
hey half a cent
PLNI potential is getting out.
Great thread started at 3stocksonfire for PLNI.
Not a pumper board. Intelligent discussion.
Take a look. They say it is the next HISC-like pick.
Buying.
You remember this post you posted on the plni board.
I am still waiting for your source on your post. From the other day. Atleast chrisox backs some of his crap up, You show Nothing.
Matts record is under 10% Can I see were you found this out?
And you heard this from who?
A name and a contact # would be nice. Or you can't provide this.
GARTH
5bag_penny
3 post on HISC and that's the best you come up with.
I don't mind a good thought post but you have shown nothing. You are right 5.5 million deal and we sold a product from IMX.
When you shop at WAL MART they don't make anything too. so what your saying is we sold something and made a profit on something we don't make,Stock or anything else. That's great! we made money on sales
If you are going to bash please be at least smarter then this guy(that's all I ask)
GARTH
JUST BY THE CONVERSATION
I can bet Chrisox is bashing or taking everyone's best interest in this. Well the other day I finally put him on ignore! Does he know what hes talking about YES to a certain point. Right down to the point if he knows as much as I think he does then I could almost bet hes holding a couple 100g's of this and just F@#King with all of you, Little assmunch I know you were the kid in the corner of the playground to afraid to play with everyone eles. Well thats fine you can stay there.
But to all of you you heard it from me first assmunch has his shares of hisc hes just looking for attention..
GARTH
Rumer always say girls open the market and boys close it
Look like the big boys are saying BUY!!!
Nite happens to be ameritrades mm
Should we post the #
Redcloudpaint
Well that answers my post I stated last night. Thanks for the info..
Garth
Samule0b
This is my hobby almost a sickness in my girl's eye. What does she know!!! She only pays the bills.
This has to be MM's playing games who in there right mind gives a ask a hole penny below all other askes. let them have fun with this now!!!
Garth
I am starting to beleive that the cc is about going to a new board. We all know there is a silent period. Wich you can have No pr's that change the structure of the bussiness. The last PR that really changed the structure was on the july 21st PR wich brings me to wonder that the 8/23 cc is 30 days away from that date.
Just pondering the thought. If no money or structure change pr's come out this next week and a half this is what im leaning towards.
Garth
Minddoc7
Sorry if it got out of hand I will put him on ignore and get back to the stock at hand.
GARTH
would you like a sorry I was not right on the money To the exact # I hold 950000 left or if the fill order of 250000 @.08 Comes though 1.2m to think Of it The 7000 shares of siri is really 12000 shares but 5000 really are not mine. Margin is a good thing but im sure you will tell me diffrent.
We just trade much diff. I go after big chunks real fast to ride free. I use stocks like siri to fund my penny stocks. I probally paid more in taxes last quater then you will earn all yr. Not that im complaining about wrighting SAM his checks.
Ill even throw in free advise By ssty when they start trading again. imo
I told people to short IMX the day it ran on the news of hisc Ill even tell you to buy DAL right now First thing I bought this morning.
I have told you before Someone like you should buy bonds!!!
Garth
Nice try chris The sale excuted on the 21st. the 20th was not the last day we hit .12 sells and buys have been made bank total 1.8m As you should know bank totals are taxable on a first in first out basis. with my core holdings still 800,000
Daytrading this I would love to see the price flux. But you still dont see me bad mouthing this.
I see no reason to have to justify to you as a coward you are to give advise to other people when you hold nothing.
see you at the finish line (oh wait your not in the race)
Garth
Just got off the phone with Matt, If you own any of this stock you would be foolish not to take the time to hear the cc.
Only question I asked Matt was is this going to be a good cc call or bad.
His reply makes me think this is going to good news.
GLTA
Garth
Yes bobby I am signed up for it.
Garth
Nebula
I beleive this is good news for SSTY, IMO I really beleive someone needed time to cover a short and thats why the sec was called in.
Great news
MM's got caught with there pants down and I beleive (IMO) thats why the sec stepped in!!!SSTY WILL BE ON TOP
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19329 / August 8, 2005
SECURITIES AND EXCHANGE COMMISSION v. KENNETH D. PASTERNAK AND JOHN P. LEIGHTON, No. ___________ (___) (D.N.J.)
SEC FILES FRAUD CHARGES AGAINST KNIGHT SECURITIES' FORMER CEO AND INSTITUTIONAL SALES DESK MANAGER
The Securities and Exchange Commission today filed a civil fraud action in the United States District Court for the District of New Jersey against Kenneth D. Pasternak ("Pasternak"), the former Chief Executive Officer and Head of the Trading Desk of Knight Securities, L.P., now known as Knight Equity Markets, L.P. ("Knight" or "Firm"), and John P. Leighton ("John Leighton"), the former head of the Institutional Sales Desk at Knight, for their role in the "best execution" scheme that defrauded Knight's institutional customers.
The Commission's complaint alleges in part, that:
The defendants among others at Knight engaged in a fraudulent scheme designed to conceal from their institutional customers the manner in which they were working their orders. In doing so, the defendants failed to provide best execution to their customers resulting in profits for Knight, and the defendants personally, that far exceeded the industry norm.
John Leighton and Kenneth Pasternak, as senior executives at Knight, reviewed Knight reports and data which disclosed, among other things, the manner in which Knight was working institutional customer orders and the extraordinary profits that Knight was generating from these institutional orders. John Leighton and Pasternak therefore knew or were reckless in not knowing that customers were being fraudulently deprived of best execution, but permitted Knight's traders, including John Leighton's brother Joseph Leighton, to continue the unlawful trading practices while both John Leighton and Pasternak were receiving millions of dollars in compensation directly generated from the lucrative trading. At the same time that Pasternak and John Leighton knew, or were reckless in not knowing, that Knight was fraudulently depriving its customers of "best execution", Pasternak made material misstatements in Knight's Commission filings, including Knight's Form 10-K, and John Leighton made statements to Knight's institutional customers all concerning Knight's execution quality.
John Leighton and Pasternak were responsible for supervising Knight's institutional sales traders. By reviewing institutional trade and exception reports, John Leighton and Pasternak knew or were reckless in not knowing that the sales traders systematically misused Automated Confirmation Transaction Service ("ACT") trade modifiers, causing the untimely reporting of trades to the ACT. The trade modifier misuse enabled the sales traders to record inaccurate execution times on the Firm's books and records, compromised the ability of the customers to determine the quality of the executions they were receiving, and allowed certain Knight employees to circumvent limit order protection protocols at the Firm. Despite the systematic misuse of the ACT modifiers, John Leighton and Pasternak did not take effective remedial action, and the sales traders continued to misuse the trade modifiers until November 2002.
The Commission alleges in its complaint that Pasternak and John Leighton violated Section 17(a) 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. The Commission also alleges that Pasternak and John Leighton aided and abetted Knight's violations of Sections 15(c)(1), 10(b) and 17(a) of the Exchange Act and Rules 10b-5 and 17a-3 thereunder. The Commission also alleges that Pasternak is liable as a control person, under Section 20(a) of the Exchange Act, for Knight's violations of Sections 15(c)(1) and 17(a) of the Exchange Act and Rule 17a-3 thereunder. In its action, the Commission is seeking against each defendant a permanent injunction, disgorgement of all ill-gotten gains plus pre-judgment interest and civil penalties.
In December 2004, the Commission and the NASD brought settled enforcement actions against Knight. The enforcement actions resulted in payments of over $79 million in disgorgement, civil penalties and fines. In Knight's settlement with the Commission, the firm consented to the issuance of an administrative order, without admitting or denying the findings therein, that found that Knight (i) willfully violated the broker-dealer antifraud provisions of the Exchange Act (Section 15(c)(1)(A)) and multiple provisions of the books and records provisions of the Exchange Act (Exchange Act Section 17(a) and Rules 17a-3(a)(1), 17a-3(a)(7), 17a-4(b)(1) and 17a-4(b)(4) thereunder), and (ii) failed reasonably to supervise pursuant to Section 15(b)(4)(E) of the Exchange Act with a view to preventing violations of Sections 15(c)(1) and 17(a) of the Exchange Act and Rule 17a-3(a)(1) thereunder. For further information, see In the Matter of Knight Securities, L.P., Securities Exchange Act of 1934 Rel. No. 50867 (December 16, 2004).
Additionally, in April 2005, the Commission and the NASD brought and settled enforcement actions against Joseph Leighton. In that settlement, Joseph Leighton, without admitting or denying the Commission's allegations, consented to the entry of a judgment that (i) permanently enjoined him from future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5, and (ii) ordered him to pay $1,939,264 in disgorgement of ill-gotten gains, $660,282.78 in prejudgment interest and $750,000 in civil penalties. Joseph Leighton also consented, without admitting or denying the findings, to the entry of a Commission Order that permanently barred him from association with any broker or dealer pursuant to Section 15(b)(6) of the Exchange Act. For further information, see Securities and Exchange Commission v. Joseph W. Leighton, Litigation Release No. 19193 (April 20, 2005) and In the Matter of Joseph W. Leighton, Securities Exchange Act of 1934 Rel. No. 51699 (May 17, 2005).
The Commission acknowledges the assistance of the NASD in this matter.
Now this is good NEWS
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19329 / August 8, 2005
SECURITIES AND EXCHANGE COMMISSION v. KENNETH D. PASTERNAK AND JOHN P. LEIGHTON, No. ___________ (___) (D.N.J.)
SEC FILES FRAUD CHARGES AGAINST KNIGHT SECURITIES' FORMER CEO AND INSTITUTIONAL SALES DESK MANAGER
The Securities and Exchange Commission today filed a civil fraud action in the United States District Court for the District of New Jersey against Kenneth D. Pasternak ("Pasternak"), the former Chief Executive Officer and Head of the Trading Desk of Knight Securities, L.P., now known as Knight Equity Markets, L.P. ("Knight" or "Firm"), and John P. Leighton ("John Leighton"), the former head of the Institutional Sales Desk at Knight, for their role in the "best execution" scheme that defrauded Knight's institutional customers.
The Commission's complaint alleges in part, that:
The defendants among others at Knight engaged in a fraudulent scheme designed to conceal from their institutional customers the manner in which they were working their orders. In doing so, the defendants failed to provide best execution to their customers resulting in profits for Knight, and the defendants personally, that far exceeded the industry norm.
John Leighton and Kenneth Pasternak, as senior executives at Knight, reviewed Knight reports and data which disclosed, among other things, the manner in which Knight was working institutional customer orders and the extraordinary profits that Knight was generating from these institutional orders. John Leighton and Pasternak therefore knew or were reckless in not knowing that customers were being fraudulently deprived of best execution, but permitted Knight's traders, including John Leighton's brother Joseph Leighton, to continue the unlawful trading practices while both John Leighton and Pasternak were receiving millions of dollars in compensation directly generated from the lucrative trading. At the same time that Pasternak and John Leighton knew, or were reckless in not knowing, that Knight was fraudulently depriving its customers of "best execution", Pasternak made material misstatements in Knight's Commission filings, including Knight's Form 10-K, and John Leighton made statements to Knight's institutional customers all concerning Knight's execution quality.
John Leighton and Pasternak were responsible for supervising Knight's institutional sales traders. By reviewing institutional trade and exception reports, John Leighton and Pasternak knew or were reckless in not knowing that the sales traders systematically misused Automated Confirmation Transaction Service ("ACT") trade modifiers, causing the untimely reporting of trades to the ACT. The trade modifier misuse enabled the sales traders to record inaccurate execution times on the Firm's books and records, compromised the ability of the customers to determine the quality of the executions they were receiving, and allowed certain Knight employees to circumvent limit order protection protocols at the Firm. Despite the systematic misuse of the ACT modifiers, John Leighton and Pasternak did not take effective remedial action, and the sales traders continued to misuse the trade modifiers until November 2002.
The Commission alleges in its complaint that Pasternak and John Leighton violated Section 17(a) 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. The Commission also alleges that Pasternak and John Leighton aided and abetted Knight's violations of Sections 15(c)(1), 10(b) and 17(a) of the Exchange Act and Rules 10b-5 and 17a-3 thereunder. The Commission also alleges that Pasternak is liable as a control person, under Section 20(a) of the Exchange Act, for Knight's violations of Sections 15(c)(1) and 17(a) of the Exchange Act and Rule 17a-3 thereunder. In its action, the Commission is seeking against each defendant a permanent injunction, disgorgement of all ill-gotten gains plus pre-judgment interest and civil penalties.
In December 2004, the Commission and the NASD brought settled enforcement actions against Knight. The enforcement actions resulted in payments of over $79 million in disgorgement, civil penalties and fines. In Knight's settlement with the Commission, the firm consented to the issuance of an administrative order, without admitting or denying the findings therein, that found that Knight (i) willfully violated the broker-dealer antifraud provisions of the Exchange Act (Section 15(c)(1)(A)) and multiple provisions of the books and records provisions of the Exchange Act (Exchange Act Section 17(a) and Rules 17a-3(a)(1), 17a-3(a)(7), 17a-4(b)(1) and 17a-4(b)(4) thereunder), and (ii) failed reasonably to supervise pursuant to Section 15(b)(4)(E) of the Exchange Act with a view to preventing violations of Sections 15(c)(1) and 17(a) of the Exchange Act and Rule 17a-3(a)(1) thereunder. For further information, see In the Matter of Knight Securities, L.P., Securities Exchange Act of 1934 Rel. No. 50867 (December 16, 2004).
Additionally, in April 2005, the Commission and the NASD brought and settled enforcement actions against Joseph Leighton. In that settlement, Joseph Leighton, without admitting or denying the Commission's allegations, consented to the entry of a judgment that (i) permanently enjoined him from future violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5, and (ii) ordered him to pay $1,939,264 in disgorgement of ill-gotten gains, $660,282.78 in prejudgment interest and $750,000 in civil penalties. Joseph Leighton also consented, without admitting or denying the findings, to the entry of a Commission Order that permanently barred him from association with any broker or dealer pursuant to Section 15(b)(6) of the Exchange Act. For further information, see Securities and Exchange Commission v. Joseph W. Leighton, Litigation Release No. 19193 (April 20, 2005) and In the Matter of Joseph W. Leighton, Securities Exchange Act of 1934 Rel. No. 51699 (May 17, 2005).
The Commission acknowledges the assistance of the NASD in this matter.