ADMINISTRATIVE PROCEEDINGS INITIATED AGAINST RAY STODDARD AND JOSEPH CILLO
The Commission announced that it has entered an order instituting public administrative proceedings against Ray S. Stoddard and Joseph P. cillo to determine what action, if any, is appropriate with respect to their participation in offerings of penny stock.
The order alleges that Stoddard has been permanently enjoined from violations of sections 5(a), 5(c) and 17(a) of the Securities Act and section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder and that cillo has been permanently enjoined from violations of section 17(a) of the securities Act and section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
It is alleged, among other things, that Stoddard signed a letter in which he opined that the stock of Unifirst Corp. was freely tradeable based on his review of certain corporate records when, in fact, Stoddardhad undertaken no such review.
It is further alleged that cillo, as counsel for Unifirst, aided and abetted in the public distribution of information which failed to disclose that Unifirst's president had acquired a 70% interest in the company's stock and that cillo gave written instructions to Unifirst's transfer agent to issue such stock into nominee name, thereby assisting Unifirst's president in the sale of the president's stock. (ReI. 34-35611)
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