Tuesday, March 11, 2008
The federal district court for the Southern District of New York entered a judgment permanently enjoining the partnership Hollingsworth, Rothwell & Roxford ("HRR") from future violations of the anti-manipulation and tender offer anti-fraud provisions of the federal securities laws. HRR was ordered to pay $900,000 in civil monetary penalties. The court also entered a judgment permanently enjoining Theodore Roxford a/k/a Lawrence David Niren ("Roxford") from future violations and ordered him to pay $900,000 in civil monetary penalties. Both judgments were entered by default.
The SEC alleged that beginning in 2003, Roxford and HRR made false and materially misleading statements in connection with purported tender offer announcements for five publicly-traded companies - Sony Corporation, Zapata Corporation, Edgetech Services, Inc., Playboy Enterprises, Inc., and PeopleSupport, Inc. Roxford and HRR publicized the phony offers through press releases, internet message board postings, and in at least one filing with the Commission. They made these fake offers in order to manipulate the price of the target companies' stock by inducing investors to purchase the stock.