Defendant Name: Heart Tronics, Inc.

Defendant Type: Public Company

Document Reference: court_doc152_11-cv-01962

Document Details

Legal Case Name SEC (Plaintiff) v. Heart Tronics, Inc., Mitchell Jay Stein, Willie James Gault, J. Rowland Perkins, II, Martin Bert Carter, Mark Crosby Nevdahl, and Ryan Allan Rauch, (Defendants); Tracey Hampton-Stein, ARC Finance Group, LLC, ARC Blind Trust, THS Blind Trust, JAYMI Blind Trust, Oak Tree Investments Blind Trust, WBT Investments Blind Trust, Catch 83 General Partnership, and Five Investments Partnership (Relief Defendants)
Document Name Judgment as to Defendant Heart Tronics, Inc.
Document Date 01-Oct-2014
Document Format Civil Proceeding
Case Number 11-cv-01962
Federal District Court California, Central District of California
Federal District Judge James V. Selna
Allegation Type Issuer Reporting and Disclosure
Document Summary On October 1, 2014, the Court issued a final judgment as to Defendant Heart Tronics, Inc. stating: "Defendant Heart Tronics, Inc. consented to entry of this Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Judgment."

Disgorgement & Penalty Information

The Court stated: "Upon motion of the Commission, the Court shall determine whether it is appropriate to order disgorgement of ill-gotten gains and/or a civil penalty pursuant to Section 20(d) of the Securities Act . . . and Section 21(d)(3) of the Exchange Act . . . and, if so, the amount(s) of the disgorgement and/or civil penalty."

Related Documents:

comp22204 20-Dec-2011 Complaint
The SEC filed a complaint on December 20, 2011. In the complaint, the SEC alleged that ""[b]etween December 2005 and December 2008, defendant Mitchell J. Stein ('Stein'), the purported outside counsel of defendant Heart Tronics, Inc., ... and husband of its majority shareholder, orchestrated a brazen series of frauds designed to inflate the price of Heart Tronics stock so that he could profit from selling its securities to investors."
LR-22204 20-Dec-2011 Litigation Release
SEC Charges Heart Tronics, Inc. and Six Individuals in Connection with a Series of Fraudulent Schemes Pumping Company Stock
On December 20, 2011, the SEC issued a litigation release describing the complaint against Heart Tronics, Inc. and six individual defendants.
2011-271 20-Dec-2011 Press Release--Civil Action
SEC Charges California Company, Co-CEOs, and Attorney in Series of Fraudulent Schemes Pumping Company Stock
On December 20, 2011, the SEC announced that it charged purported heart monitoring device company Heart Tronics, Inc. ("Heart Tronics") and six individuals involved in a series of fraudulent schemes to artificially inflate the company's stock. According to the SEC's complaint filed in federal court in Los Angeles, Heart Tronics--known as "Signalife" during most of the scheme's time period from December 2005 to December 2008--fraudulently and repeatedly announced millions of dollars in sales orders for its product between 2006 and 2008 when, in fact, the company never had viable sales orders from actual customers. The SEC charges the defendants with various violations of the federal securities laws and seeks disgorgement of ill-gotten gains with prejudgment interest financial penalties and permanent injunctive relief.

Related Actions:

In the Matter of Mitchell J. Stein