Sorry It took so long to get back to you but I was out all day.
Here is a copy of the article:
SEC seeks penalty in stock sale
Atlanta firm's chief faces accusation
David McNaughton - Staff
Wednesday, January 28, 2004
The Securities and Exchange Commission wants the harshest possible civil penalty against the head of a tiny Atlanta company who was accused of issuing false and misleading press releases, and profiting because of them.
The SEC asked the U.S. District Court in Atlanta to fine Timothy Moses $120,000, or more than 10 times what he made selling International BioChemical Industries stock.
The agency asked for the penalty because it said Moses' "conduct was egregious, he has failed to admit his wrongdoing, and he testified untruthfully in his deposition in this proceeding."
The Atlanta law firm representing Moses questioned the severity of the proposed fine and said it would be challenged. "I think his disgorgement is probably more than adequate," said John Christy of Schreeder, Wheeler & Flint.
Last February, Moses settled the case by surrendering --- or disgorging --- $11,600 in profit from selling 1.2 million shares of the company. He neither admitted nor denied the SEC's allegations, and the question of a civil fine was left open.
Moses later told the Journal-Constitution he could not discuss the case for "national security" reasons.
His problems began Feb. 6, 2003, when the SEC sued him and the company. The SEC alleged that four press releases issued in late January and early February created a false impression. They implied the federal government was interested in the company's anti-bacterial products to combat bio-terrorism, the agency charged.
The releases triggered heavy buying of International BioChemical Industries' stock, the SEC said. The shares jumped from less than 3 cents a share to more than 16 cents. They are quoted at less than 1 cent now.
No hearing date has been set on the SEC's request for the penalty.
Federal law spells out three tiers of fines against individuals for violating securities laws: $6,500, $60,000 or $120,000.
The SEC's motion suggests the court could fine Moses as much as $480,000 if it considered each of the press releases a violation of securities law.
AI
