U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19481 / December 2, 2005
Securities and Exchange Commission v. Peter S. Jessop, Socius
Holdings Ltd., SIGF, S.A., Steven R. Wright, International
Solutions, Inc., Shawn Casius and Logic’s Consulting, Inc.,
Civil Action No. 05 Civ 10115 (PAC)
S.E.C. Obtains Order Freezing $1.4 Million in International
Scheme that Drove the Stock Price of a Virtually Assetless Company
from Pennies to $90 Per Share
The United States Securities and Exchange Commission on Thursday
brought an emergency action in the United States District Court for
the Southern District of New York to freeze the U.S. brokerage
account of Socius Holdings Ltd. (“Socius”), an entity incorporated
in the British Virgin Islands and operating out of Geneva,
Switzerland, that, the Commission alleges, participated in the
fraudulent manipulation of the stock of Cameron International, Inc.
(“Cameron”) in concert with other related individuals and entities.
The Commission’s request for a temporary restraining order and asset
freeze was granted by the Honorable Judge Paul A. Crotty, who froze
$1.4 million in Socius’ assets pending a preliminary hearing.
The Commission’s complaint alleges that from August through
November 2005, Socius, in concert with defendants Peter S. Jessop,
SIGF, S.A., Steven R. Wright, International Solutions, Inc., Shawn
Casius, Logic’s Consulting, and other related individuals and
entities, manipulated Cameron’s stock price through a series of
coordinated wash sales and matched orders designed to create the
illusion of an active and rising market in Cameron and induce others
to buy Cameron shares at inflated prices. During this period, the
defendants’ trading comprised the majority, and on many days all, of
the retail buying and selling of Cameron’s stock. The defendants’
coordinated trades drove Cameron’s share price from $.05 to $90 in a
two-month period. On November 7, 2005, the Commission suspended
trading in shares of Cameron due to a lack of current and accurate
information concerning a possible change in ownership of the company
and questions regarding the dramatic rise in its share price.
The complaint charges the defendants with violations of Section
17(a) of the Securities Act of 1933, Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks, against
each, disgorgement of all ill-gotten gains plus prejudgment
interest, civil penalties, and permanent injunctions barring future
violations of the anti-fraud provisions of the federal securities
laws. In addition, the complaint seeks a temporary restraining order
and an asset freeze against Socius Holdings Ltd, and an order
against all defendants requiring expedited discovery.
Peter Jessop is the sole director of Socius and SIGF, two
entities located in Geneva, Switzerland. Steven Wright is an
accountant and the president of California-based International
Solutions, Inc. In 2003, Wright was sued by the Commission in
connection with a similar “shell factory” manipulation scheme.
See S.E.C. v. Craig J. Shaber, Stephen R. Wright et al., Civil
Action No. 3:03-CV-2247-G (N.D. Texas, filed Sept. 30, 2003) and
S.E.C. v. 2DoTrade, Inc., et al., Civil Action No.
3:03-CV-2246-N (N.D. Texas, filed Sept. 30, 2003). Shawn Casius is a
resident of California and the president of Logic’s Consulting, Inc.
SEC
Complaint in this matter
