SEC v. Gary C. Halbert; Bond Halbert; Cherrywood Publishing, Inc.; and John Doe (a/k/a Cherrywood's Keeper of Records), No. LR-18359, District of Massachusetts (Aug. 12, 2003) — Press Release
raw: Gary C. Halbert, et al.
Gary C. Halbert, et al., No. LR-18359 (Aug. 12, 2003)
The SEC sought judicial enforcement of subpoenas against Gary C. Halbert, Bond Halbert, Cherrywood Publishing, and an unnamed record keeper for refusing to produce documents or testify regarding alleged false claims about a stock trading system in USA Today ads and a website, potentially violating securities antifraud laws.
The SEC filed a motion in U.S. District Court for the District of Massachusetts to enforce administrative subpoenas issued on August 12 and August 20, 2003, against Gary C. Halbert, Bond Halbert, Cherrywood Publishing, Inc., and Cherrywood's Keeper of Records. The investigation centered on possible material false or misleading statements made in USA Today advertisements and on a website promoting a stock trading system, which may have violated the antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. As of September 23, 2003, the respondents had not complied with the subpoenas, prompting the SEC to seek court intervention—no formal fraud charges or penalties had yet been brought.
The Securities and Exchange Commission filed a motion in U.S. District Court for the District of Massachusetts to enforce investigative subpoenas against Gary C. Halbert, Bond Halbert, Cherrywood Publishing, Inc., and an unnamed individual referred to as Cherrywood's Keeper of Records. The subpoenas, issued on August 12 and August 20, 2003, demanded documents and testimony related to an investigation into whether these parties made false or misleading claims about a stock trading system in USA Today advertisements and on a website operated under Gary C. Halbert’s name. The SEC’s Formal Order of Private Investigation, initiated on August 12, 2003, sought to determine potential violations of the antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. As of September 23, 2003, none of the respondents had produced the requested materials or appeared to testify, prompting the SEC to seek judicial enforcement. This action was procedural in nature, aimed solely at compelling cooperation, not at imposing penalties or filing formal charges. The case did not allege specific financial losses or investor harm at this stage, but focused on obstruction of the investigative process. The SEC emphasized the importance of compliance with administrative subpoenas to ensure the integrity of its enforcement authority.
Extracted insights
- person administrative subpoenas
- person bond halbert
- person commission staff
- person formal order
- person responsive documents
- Securities and Exchange Commission filed an action Massachusetts Federal Court
- Commission alleges failed to comply administrative subpoenas
- Commission issued formal order of private investigation
- Formal Order directed Commission staff to undertake a private investigation
- Commission staff is investigating possible material false statements concerning a stock trading system
- Commission staff issued subpoenas Gary C. Halbert, Bond Halbert, Cherrywood Publishing, Inc., and John Doe
- Commission staff issued second subpoena Bond Halbert
- Commission alleges have not produced responsive documents
- Parties have not testified as compelled by subpoenas
Securities and Exchange Commission v. Gary C. Halbert, et al. (United States District Court for the District of Massachusetts, 03-MBD-10284-RWZ) The Securities and Exchange Commission today filed an action in Massachusetts federal court to enforce investigative subpoenas against Gary C. Halbert, Bond Halbert, Cherrywood Publishing, Inc. ("Cherrywood"), and John Doe (a/k/a Cherrywood's Keeper of Records"). The Commission alleges in its application filed with the court that Gary C. Halbert, Bond Halbert, Cherrywood, and Cherrywood's Keeper of Records failed to comply with administrative subpoenas requiring them to produce documents and testify in connection with an investigation to determine whether they and others may have violated the antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. In its application and supporting papers, the Commission alleges that, on August 12, 2003, the Commission issued a formal order of private investigation entitled In the Matter of Cherrywood Publishing, Inc., File No. B-01967 ("Formal Order"). The Formal Order directed the Commission staff to undertake a private investigation to determine if there were violations of the federal securities laws. According to the Commission's court papers, the Commission staff is investigating possible material false statements concerning a stock trading system made by or on behalf of Gary C. Halbert and Cherrywood in newspaper advertisements that appeared in USA Today and on a website purportedly operated by Gary C. Halbert. According to the application, the Commission staff issued subpoenas to Gary C. Halbert, Bond Halbert, Cherrywood, and Cherrywood's Keeper of Records on August 12, 2003 and issued a second subpoena to Bond Halbert on August 20, 2003, requiring them to produce documents and testify concerning matters relevant to the investigation. As of September 23, 2003, the Commission alleges that the parties have not produced the responsive documents and have not testified as compelled by the subpoenas. SEC Application in this matterSecurities and Exchange Commission v. Gary C. Halbert, et al. (United States District Court for the District of Massachusetts, 03-MBD-10284-RWZ) The Securities and Exchange Commission today filed an action in Massachusetts federal court to enforce investigative subpoenas against Gary C. Halbert, Bond Halbert, Cherrywood Publishing, Inc. ("Cherrywood"), and John Doe (a/k/a Cherrywood's Keeper of Records"). The Commission alleges in its application filed with the court that Gary C. Halbert, Bond Halbert, Cherrywood, and Cherrywood's Keeper of Records failed to comply with administrative subpoenas requiring them to produce documents and testify in connection with an investigation to determine whether they and others may have violated the antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. In its application and supporting papers, the Commission alleges that, on August 12, 2003, the Commission issued a formal order of private investigation entitled In the Matter of Cherrywood Publishing, Inc., File No. B-01967 ("Formal Order"). The Formal Order directed the Commission staff to undertake a private investigation to determine if there were violations of the federal securities laws. According to the Commission's court papers, the Commission staff is investigating possible material false statements concerning a stock trading system made by or on behalf of Gary C. Halbert and Cherrywood in newspaper advertisements that appeared in USA Today and on a website purportedly operated by Gary C. Halbert. According to the application, the Commission staff issued subpoenas to Gary C. Halbert, Bond Halbert, Cherrywood, and Cherrywood's Keeper of Records on August 12, 2003 and issued a second subpoena to Bond Halbert on August 20, 2003, requiring them to produce documents and testify concerning matters relevant to the investigation. As of September 23, 2003, the Commission alleges that the parties have not produced the responsive documents and have not testified as compelled by the subpoenas. SEC Application in this matter