Alternative Energy Technology Center (ATNE)

[Voices of Reason]

Commission Suspends Jonathan C. Gilchrist
The Commission announced today that it has issued an Order Instituting Public Administrative Proceedings and Imposing Temporary Suspension Pursuant to Rule 102(e)(3)(i)(B) of the Commission's Rules of Practice that suspends Jonathan C. Gilchrist from appearing or practicing before the Commission as an attorney.

The Commission's Order is based on a final judgment against Gilchrist issued by the United States District Court for the Southern District of Texas in SEC v. Jonathan C. Gilchrist, Case No. 4:13-cv-163, which found that he violated Sections 5(a), 5(c), 17(a)(1) and 17(a)(3) of the Securities Act of 1933, as well as Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, while president and chairman of The Alternative Energy Technology Center, Inc. (“Alternative Energy”). Specifically, the Court found that Gilchrist authorized the unregistered offer and sale of six million Alternative Energy shares to himself and two entities he controlled, improperly maintaining that the offer and sale were exempt from registration under Rule 504 of Regulation D of the Securities Act of 1933. Further, the Court found that Gilchrist effected match trades in Alternative Energy securities through brokerage accounts he controlled, thereby driving the per share price from $1.00 per share immediately after a reverse stock split on January 18, 2008 to $2.41 per share, at which point Gilchrist arranged for promoters to tout Alternative Energy to further drive up the price to $3.75 per share before the Commission suspended trading in the stock. Into this inflated market, Gilchrist made unregistered sales of 229,661 shares, which the Court found generated illicit proceeds of $692,146. In addition, as alleged in the complaint, to induce the transfer agent to issue shares of Alternative Energy without restriction, Gilchrist emailed that agent with his own interpretation of Regulation D of the Securities Act.

Gilchrist has 30 days to petition the Commission to lift the temporary suspension. If he does not make a timely petition, the suspension will automatically become permanent pursuant to Rule 102(e)(3)(ii). (Rel. 34-70867)

http://www.sec.gov/litigation/admin/2013/34-70867.pdf