ENFORCEMENT PROCEEDINGS - In the Matter of Carl N. Duncan
Dec 20, 2012 (Menafn - SECURITIES AND EXCHANGE COMMISSION RELEASE/ContentWorks via COMTEX) --On December 20, 2012, the Commission 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 Carl N. Duncan. The Order finds that on September 27, 2012, the Commission filed a complaint in the United States District Court for the Southern District of New York against Duncan alleging violations of Sections 5(a), 5(c) and 17(a)(2) of the Securities Act of 1933 ("the Securities Act"). On December 10, 2012, the court entered a final judgment by consent permanently enjoining him from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act. Additionally, the final judgment: (a) prohibits Duncan from participating in the preparation or issuance of any opinion letter in connection with the offer or sale of securities pursuant to, or claiming an exemption under Section 4(1) of the Securities Act [15 U.S.C. 77d(1)] and Rule 144 or Rule 802 under the Securities Act [17 C.F.R. 230.144 and 230.802], including without limitation, signing an opinion letter or preparing an opinion letter to be signed by another person, related to such offering; (b) permanently bars Duncan from participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock; and (c) requires Duncan to pay disgorgement and prejudgment interest thereon in the amount of 16,094.98, and a civil money penalty in the amount of 25,000.00. The Commission's complaint alleged, among other things, that Duncan prepared and issued false legal opinions and letters to the transfer agent, OTC Markets Group, Inc., and the Depository Trust and Clearing Corporation in connection with a scheme to inflate trading volume in the common shares of 8000, Inc. and the company's stock price.
Based on the above, the Order suspends Carl Duncan from appearing or practicing before the Commission as an attorney. Carl Duncan consented to the issuance of the Order without admitting or denying findings except he admitted the entry of the final judgment. (Rel. 34-68501; File No. 3-15149)
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