Securities & Exchange Commission v. Cavanagh

OPINION

COTE, District Judge.

This case concerns a scheme through which the defendants reaped millions of dollars in profits at the expense of the American investor by creating active trading in the United States securities market without making the disclosures that were required for the benefit of the investing public by the Securities Act of 1933.

Specifically, in this action, which was filed on March 13, 1998, the Securities and Exchange Commission (“SEC”) alleges that the defendants offered and sold securities of Electro-Optical Systems Corporation (“EOSC”) in violation of the registration…