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by Mike Caswell

Over seven years after it filed the charges, the U.S. Securities and Exchange Commission has won a permanent ban and $6.6-million in financial sanctions against Erik Matz, one of those in a New York boiler room operation that boosted a handful of stocks, including a now-defunct Canadian Securities Exchange listing. (All figures are in U.S. dollars.) The group called seniors and others, pushing them to buy millions of shares. Their tactics including making threats and flooding potential investors with calls.

The penalties for Mr. Matz are contained in a proposed judgment filed on Thursday, March 13, in federal court in New York. The judge has ordered Mr. Matz to disgorge $4.5-million in gains, plus interest. Mr. Matz is also permanently barred from penny stocks. The penalties represent a negotiated settlement and still require approval from the judge.

The sanctions, which stem in part from the manipulation of former CSE listing Intelligent Content Enterprises Inc., form just part of Mr. Matz's penalty for the scheme. He previously pleaded guilty to related criminal charges, and received one year of house arrest. Prosecutors said that he ran one of the boiler rooms in the scheme, called Power Traders Press. Mr. Matz was one of the first to plead guilty in a case that encompassed many defendants.

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