| The Securities and Exchange Commission today announced that it has filed an emergency action against the Chairman of a microcap company for defrauding its shareholders. According to the SEC's complaint, filed in the U.S. District Court for the Southern District of New York, on May 19, 1965, the Chairman of Barium Chemicals Ltd. ("B&T") issued an order requiring him to conduct an independent investigation into the company's affairs. The SEC alleges that the Chairman was not consulted about the matter when drafting the order and instead acted as an unregistered agent. As alleged in the complaint, the Chairman then delegated his duties to another individual who had agreed to participate in the investigation. The SEC further alleges that the Chairman did not inform the Board of Directors of this matter but rather directed them to do so by means of a memorandum he presented to the Board. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges the Chairman with violating Section 237(b) of the Investment Advisers Act of 1940 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the complaint, the Chairman consented to the entry of a final judgment that permanently enjoins him from future violations of Section 237(b) of the Investment Advisers Act and orders him to pay disgorgement of ill-gotten gains plus prejudgment interest and civil penalties. The court also granted the SEC's request for an asset freeze and other relief. The SEC's investigation was conducted by Sanjay Wadhwa and supervised by C.K. Chandrasekhar Rao. The litigation will be led by Mr. Wadhwa. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. |