2005-12-02 sec-litreleases litigation_release 64 KB 1,689 chars

SEC v. David M. Wolfson; Jon R. Marple; and Grateful Internet Associates, LLC, No. LR-19482, District of Utah (Dec. 2, 2005) — Press Release

raw: David M. Wolfson et al.

David M. Wolfson et al., No. LR-19482 (Dec. 2, 2005)

Caption: SEC v. David M. Wolfson, et al.

summary

Jon R. Marple and his entity Grateful Internet Associates, LLC were found liable for securities fraud by making material misrepresentations in SEC filings for F-10 Oil and Gas Properties, Inc., a microcap issuer in a boiler room scheme targeting investors abroad, and were ordered to pay $270,950.27 in disgorgement, interest, and penalties, plus a penny stock ban.

paragraph

Jon R. Marple and Grateful Internet Associates, LLC were held liable for violating Sections 10(b), 17(a), and Rule 10b-5 of federal securities laws by drafting material misrepresentations in filings for F-10 Oil and Gas Properties, Inc., a microcap issuer in a broader boiler room scheme. The U.S. District Court for the District of Utah granted summary judgment to the SEC, permanently enjoining Marple and his entity from future securities violations and barring Marple from participating in any penny stock offering. They were ordered to disgorge $149,487, pay $21,463.27 in prejudgment interest, and a $100,000 civil penalty, totaling $270,950.27 in financial sanctions.

narrative

In October 2003, the U.S. Securities and Exchange Commission filed a complaint against twenty-one individuals and entities involved in a fraudulent scheme to sell securities in five U.S.-based microcap issuers to hundreds of investors in the UK, Australia, and New Zealand via a boiler room in Vientiane, Laos. Jon R. Marple, acting as a consultant for F-10 Oil and Gas Properties, Inc., one of the issuers, made material misrepresentations in the company’s SEC filings, directly aiding the fraud. On November 29, 2005, Judge Dale A. Kimball granted the SEC’s motion for summary judgment against Marple and his entity, Grateful Internet Associates, LLC, finding them liable for violating Sections 10(b) and 17(a) of the federal securities laws and Rule 10b-5. The court permanently enjoined both parties from future violations of these provisions and barred Marple from participating in any penny stock offering. They were ordered to disgorge $149,487 in ill-gotten gains, pay $21,463.27 in prejudgment interest, and a $100,000 civil penalty, totaling $270,950.27 in financial sanctions. The case was part of a broader crackdown on international boiler room operations targeting retail investors through deceptive filings and high-pressure sales tactics. This outcome underscored the SEC’s enforcement focus on both direct actors and enablers in microcap fraud schemes.

Enriched metadata

Scheme: boiler-room (95%)
Court: District of Utah
Disgorgement: $149,487
Civil penalty: $100,000,000,000
Entity: Jon R. Marple

Classified boiler-room(confidence 95%). EDGAR detection: forms Form D· recall 50% / precision 4%. detection rule →

Extracted insights

Dollar amounts 3

$149K $149,487 $100K–$1M
$100K $100,000 $100K–$1M
$21K $21,463 $10K–$100K

Entities 7

company Grateful Internet Associates, LLC ×2
person Jon R. Marple ×2
company an order against jon r. marple and grateful internet associates, llc
person Dale a. Kimball
person David M. Wolfson
company F-10 Oil And Gas Properties, Inc
agency Securities and Exchange Commission

Triples 5

Honorable Dale A. Kimball entered an order against Jon R. Marple and Grateful Internet Associates, LLC
order granted the Commission's motion for summary judgment
order enjoined Jon R. Marple and Grateful Internet Associates from future violations of the antifraud provisions of the federal securities laws
Grateful Internet Associates, LLC controlled by Jon R. Marple
SEC sued David M. Wolfson et al.

View original SEC litigation releasesec.gov

Extracted body text (1,689c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 19482 / December 2, 2005 SEC v. David M. Wolfson et al., Docket No. 2:03CV00914DAK (USDC, D.Ut.) On November 29, 2005, the Honorable Dale A. Kimball, United States District Judge for the District of Utah, entered an order against Jon R. Marple and Grateful Internet Associates, LLC, an entity controlled by Marple, granting the Commission's motion for summary judgment and permanently enjoining Marple and Grateful Internet Associates from future violations of the antifraud provisions of the federal securities laws. In October 2003, the Commission filed a Complaint, in the United States District Court for the District of Utah, against twenty-one individuals and entities involved in a scheme to sell securities in five United States-based microcap issuers to hundreds of investors located primarily in the United Kingdom, Australia and New Zealand through a boiler room located in Vientiane, Laos. Jon R. Marple worked as a consultant for F-10 Oil and Gas Properties, Inc one of the microcap issuers named in the Complaint. The court's order contained findings that Marple made material misrepresentations in drafting F-10 Oil and Gas Properties, Inc. filings with the Commission. The order specifically enjoins Marple and Grateful Internet Associates from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and Section 17(a) of the Securities Act of 1933 and orders them to pay disgorgement of $149,487 plus prejudgment interest of $21,463.27 together with a civil penalty of $100,000. Marple was also barred from participating in any offering of penny stock.

OCR text (1,689c · plain-text · 99% conf)