Rajiv Vohra, Sean T. Healey, Lantern Investments, Ltd., Lipton Holdings, Ltd., and Beaufort Holdings, Ltd.
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16687/ September 6, 2000
SECURITIES AND EXCHANGE COMMISSION v. RAJIV VOHRA, SEAN T. HEALEY, LANTERN INVESTMENTS, LTD., LIPTON HOLDINGS, LTD., AND BEAUFORT HOLDINGS, LTD., United States District Court for the Southern District of Florida, Civil Action No. 00-7286-CIV-SEITZ
The Securities and Exchange Commission announced that it filed a civil injunctive action on September 5, 2000, in United States District Court for the Southern District of Florida, against Rajiv Vohra of Fort Lauderdale, Florida, and Sean T. Healey of Foxboro, Massachusetts, for engaging in a scheme to defraud purchasers of securities of New Directions Manufacturing, Inc., a small, furniture-manufacturing company quoted on the NASD's OTC Bulletin Board system. Lantern Investments, Ltd., Lipton Holdings, Ltd., and Beaufort Holdings, Ltd., three Bahamian companies controlled by Vohra and Healey, were also named as defendants. This action is part of the fourth nationwide Internet fraud sweep conducted by the Commission since October 1998.
The Commission's complaint alleged that the defendants used "wash sales" to create the appearance of active trading in New Directions stock. Vohra and Healey then arranged to have a false and misleading research report published on a stock-picker web site, on their own web site, and through unsolicited mass e-mails ("spam"). The research report falsely claimed that New Directions had significantly expanded, that the author of the report was an independent analyst, and that the purported analyst had issued a buy recommendation. Vohra and Healey attempted to conceal their scheme by conducting much of their activity through Canadian brokerage accounts and the Bahamian companies. The defendants profited approximately $500,000 from their scheme.
The Commission's complaint charges that Vohra, Healey, Lantern Investments, Lipton Holdings, and Beaufort Holdings violated Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder. The Commission seeks permanent injunctions, accountings, disgorgement with prejudgment interest, and civil penalties.
For tips on how to avoid Internet "pump-and-dump" stock manipulation schemes, visit http://www.sec.gov/investor/online/pump.htm . For more information about Internet fraud, visit http://www.sec.gov/divisions/enforce/internetenforce.htm . To report suspicious activity involving possible Internet fraud, visit http://www.sec.gov/complaint.shtml. For a description of other SEC enforcement actions involved in this Internet Market Manipulation Sweep, visit http://www.sec.gov/news/extra/intmm.htm.
COMMISSION FILES LAWSUIT AGAINST RAJIV VOHRA, SEAN T. HEALEY, AND THREE BAHAMIAN COMPANIES FOR STOCK MANIPULATION
On September 5, 2000, the Commission filed an injunctive action against Rajiv Vohra of Fort Lauderdale, Florida, Sean T. Healey of Foxboro, Massachusetts, and three Bahamian companies, Lantern Investments, Ltd., Lipton Holdings, Ltd., and Beaufort Holdings, Ltd. The Commission alleged in its complaint that the defendants used "wash sales" to create the appearance of active trading in the securities of New Directions Manufacturing, Inc., a small, furniture-manufacturing company quoted on the NASD's OTC Bulletin Board system. Vohra and Healey then arranged to have a false and misleading research report published on a stock-picker web site, on their own web site, and through unsolicited mass e-mails ("spam"). The research report falsely claimed that New Directions had significantly expanded, that the author of the report was an independent analyst, and that the purported analyst had issued a buy recommendation. Vohra and Healey attempted to conceal their scheme by conducting much of their activity through Canadian brokerage accounts and the Bahamian companies. The defendants profited approximately $500,000 from their scheme.
The complaint alleges that Vohra, Healey, Lantern Investments, Lipton Holdings, and Beaufort Holdings violated Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder. The Commission seeks permanent injunctions, accountings, disgorgement with prejudgment interest, and civil penalties. [SEC v. Rajiv Vohra, et al., Civil Action No. 00-7286-CIV-SEITZ, U.S.D.C. S.D.Fla.] (LR-16687)