Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Tuesday, April 10, 2007

SEC Rule 102(e) Proceeding Against Attorney

On April 9, the SEC issued an Order Instituting  Administrative Proceedings Pursuant to Rule  102(e)  of  the  Commission's  Rules  of Practice, Making Findings  and  Imposing  Remedial  Sanctions  (Order) against Lindsey Vinson. The Order finds that Vinson, from Fort  Worth, Texas, is an attorney who from October 2003 through Jan. 29, 2004, was president and chairman of the board  of  directors  of  Moliris  Corp. (Moliris). The Order also finds  that  from  Jan.  29,  2004,  through  August 2005, Vinson functioned as the de facto principal executive and principal financial officer of Moliris.  The administrative proceedings were based on  a  permanent  injunction  entered against Vinson on Dec. 11, 2006, by the  U.S.  District  Court for the Northern District of Texas, Dallas  Division, enjoining  Vinson, by consent, from future violations of  the  securities laws.  The Commission's complaint alleged that from about October 2003 through August 2005, Vinson, who had been previously enjoined  by a federal court  from  violating  the  federal  securities  laws:  (a) concealed his control of Moliris, (b) approved the filing of false and misleading Commission reports, and (c) in an attempt  to  profit  from his activities, arranged for Moliris's stock to be listed and publicly traded on the OTC  Bulletin  Board  (OTC-BB)  without  disclosing  his continuing role at Moliris, his SEC disciplinary  background  and  his prior bankruptcies. After having obtained the OTC-BB  listing,  Vinson participated in the public release of false  information  regarding  a change in Moliris's line of business and its business prospects. While engaging  in  the  alleged  misconduct,  Vinson  used  Moliris's  bank accounts to pay a variety of personal expenses.  The Order suspends Vinson from appearing or practicing as an  attorney before the Commission. Vinson consented to the issuance of  the  Order without admitting or denying the findings in the Order except that  he admitted the entry of the injunction. (Rel. 34-55603; AAE  Rel.  2594;   File No. 3-12610)

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