08/26/2014 102 STATUS REPORT re: Order (Dkt # 99) on Plaintiff's Motion for Entry of Default Judgment Against Defendant Amyot by Securities and Exchange Commission. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Kelly, Rua) (Entered: 08/26/2014)
09/12/2014 107 Assented to MOTION to Approve Consent Judgment for Entry of Final Judgments as to Defendants Maximilien Arella and Ian Morrice by Securities and Exchange Commission. (Attachments: # 1 Consent to Entry of Final Judgment by Maximilien Arella, # 2 Text of Proposed Order of Final Judgment as to Maximilien Arella, # 3 Consent to Entry of Final Judgment by Ian Morrice, # 4 Text of Proposed Order of Final Judgment as to Ian Morrice)(Kelly, Rua) (Entered: 09/12/2014)
09/11/2014 106 Copy re 105 Set/Reset Scheduling Order Deadlines, 104 Order on Motion for Order mailed to Ian Morrice 9 Okanagan Drive Nepean, ON K2H 7E7 Canada Jean-Francois Amyot 315 Chemin Claude Lefebvre Mont-Tremblant, Quebec,, CANADA H3B 4R4 Maximilien Arella 586 Giraud Laval, QC H7X 3J6 Canad on 9/11/14. (MacDonald, Gail) (Entered: 09/11/2014)
09/11/2014 105 Set/Reset Scheduling Order Deadlines: Final Pretrial Conference set for 11/12/2014 02:30 PM in Courtroom 17 before Judge Indira Talwani. Jury Trial set for 11/17/2014 09:00 AM in Courtroom 17 before Judge Indira Talwani. (MacDonald, Gail) (Entered: 09/11/2014)
09/11/2014 104 Judge Indira Talwani: ELECTRONIC ORDER entered granting 103 Motion for Order. Modified dates for pretrial and trial will be set in a separate event. (MacDonald, Gail) (Entered: 09/11/2014)
09/10/2014 103 Assented to MOTION for Order Adjourning Trial by Securities and Exchange Commission.(Drabick, James) (Entered: 09/10/2014)
United States District Court District of Massachusetts (Boston)
CIVIL DOCKET FOR CASE #: 1:12-cv-12334-IT Securities and Exchange Commission v. Spencer Pharmaceutical Inc et al
Assigned to: Judge Indira Talwani Cause: 12:22 Securities Fraud Date Filed: 12/17/2012 Jury Demand: Both Nature of Suit: 850 Securities/Commodities Jurisdiction: U.S. Government Plaintiff
Plaintiff Securities and Exchange Commission represented by Amy Gwiazda United States Securities and Exchange Commission 33 Arch Street 23rd Flr. Boston, MA 02110-1424 617-573-8839 Email: gwiazdaa@sec.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
James R. Drabick Securities and Exchange Commission - MA 33 Arch Street 23rd Floor Boston, MA 02110-1424 617-573-4535 Email: drabickj@sec.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
Franklin C. Huntington , IV Securities and Exchange Commission 33 Arch Street 23rd Floor Boston, MA 02110 617-573-8960 Fax: 617-573-4590 Email: huntingtonf@sec.gov ATTORNEY TO BE NOTICED
Rua M. Kelly United States Securities and Exchange Commission 33 Arch Street 23rd Flr. Boston, MA 02110-1424 617-573-8941 Email: kellyru@sec.gov ATTORNEY TO BE NOTICED
V. Defendant Spencer Pharmaceutical Inc
Defendant Jean-Francois Amyot represented by Jean-Francois Amyot 315 Chemin Claude Lefebvre Mont-Tremblant, Quebec, CANADA H3B 4R4 PRO SE
Faun M. Phillipson Phillipson & Uretsky LLP 111 Broadway 8th Floor New York, NY 10006 212-571-1255 TERMINATED: 06/13/2014 LEAD ATTORNEY PRO HAC VICE ATTORNEY TO BE NOTICED
Jonathan C. Uretsky Phillipson & Uretsky LLP 111 Broadway 8th Floor New York, NY 10006 212-571-1255 Email: uretsky@phillipson-uretsky.com TERMINATED: 06/03/2014 LEAD ATTORNEY PRO HAC VICE ATTORNEY TO BE NOTICED
Mitchell R. Edwards Hinckley Allen Snyder LLP Suite 1500 50 Kennedy Plaza Providence, RI 02903 401-274-2000 Fax: 401-277-9600 Email: medwards@haslaw.com TERMINATED: 06/03/2014 ATTORNEY TO BE NOTICED
Defendant Maximilien Arella represented by Maximilien Arella 586 Giraud Laval, QC H7X 3J6 Canada 514-995-9874 PRO SE
Defendant Ian Morrice represented by Ian Morrice 9 Okanagan Drive Nepean, ON K2H 7E7 Canada 613-808-0542 PRO SE
Defendant IAB Media Inc. represented by IAB Media Inc. PRO SE
Faun M. Phillipson (See above for address) TERMINATED: 06/13/2014 LEAD ATTORNEY PRO HAC VICE ATTORNEY TO BE NOTICED
Jonathan C. Uretsky (See above for address) TERMINATED: 06/03/2014 LEAD ATTORNEY PRO HAC VICE ATTORNEY TO BE NOTICED
Mitchell R. Edwards (See above for address) TERMINATED: 06/03/2014 ATTORNEY TO BE NOTICED Defendant
Court Enters Final Judgments Against CEO and Executive Vice President of Company Involved in Pump-And-Dump Scheme Involving Fictitious Buyout Offer
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23092 / September 25, 2014
Securities and Exchange Commission v. Spencer Pharmaceutical Inc., et al., Civil Action No. 1:12-cv-12334
Court Enters Final Judgments Against CEO and Executive Vice President of Company Involved in Pump-And-Dump Scheme Involving Fictitious Buyout Offer
The Securities and Exchange Commission (the "Commission") announced today that on September 25, 2014, the United States District Court for the District of Massachusetts entered final judgments in a previously filed enforcement action against defendants Maximilien Arella and Ian Morrice, the CEO and Executive Vice President, respectively, of Spencer Pharmaceutical Inc. ("Spencer"), a microcap pharmaceutical company with addresses in both Boston and Canada. Among other relief, the final judgments impose permanent injunctions against future violations of certain antifraud provisions of the federal securities laws and order Arella and Morrice to each pay $50,000 penalties.
According to the Commission's complaint, filed on December 17, 2012, Spencer, its officers and directors, and other associated parties were involved in a "pump-and-dump" scheme in 2010 and 2011 involving Spencer's stock. The scheme was orchestrated by co-defendant Jean-François Amyot, a Canadian resident who controlled Spencer. Amyot worked with Arella and Morrice, Canadian residents who were Spencer's officers and directors, to create and disseminate false and misleading press releases and to otherwise promote Spencer's stock, including via Internet websites and newsletters. Among the false and misleading press releases were a series of releases that claimed that Spencer had received an unsolicited buyout offer from a Mideast company for $245 million when, in fact, the purported buyout offer was not real. The promotional campaign significantly pumped up the price of Spencer's stock - at one point causing the price to more than double in two days - and consequently enabled Amyot to dump tens of millions of shares into the market at artificially inflated prices for gross proceeds in excess of $5 million. The complaint further alleged that Spencer, Amyot, and Arella violated certain registration provisions of the federal securities laws for transfers of millions of Spencer shares done to evade registration requirements.
Arella and Morrice each consented to the entry of the final judgments against them without admitting or denying the charges. The final judgments permanently enjoin both Arella and Morrice from violating Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 ("Securities Act") and bar both Arella and Morrice for a period of five years from serving as a director or officer of a public company and from participating in a penny stock offering. The final judgments also require Arella and Morrice to each pay $50,000 penalties. The final judgment against Arella also permanently enjoins Arella from violating Sections 5(a) and 5(c) of the Securities Act.
The Commission's action against Spencer, Amyot, and two companies controlled by Amyot (Hilbroy Advisory Inc. and IAB Media Inc.) is still pending. The Commission acknowledges the assistance of the Quebec Autorité des Marchés Financiers in connection with this matter.
The Commission suspended trading in Spencer securities on December 17, 2012 (Release 34-68447). Securities of Spencer were quoted on OTC Link operated by OTC Markets Group Inc.
For further information, see Litigation Release 22574 (December 17, 2012).
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