In the Matter of Milowe Allen Brost a/k/a Milo Brost
On November 30, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Notice of Hearing (Order) against Milowe Allen Brost a/k/a Milo Brost.
The Order alleges that from at least 1999 to 2008, Brost created and controlled several successive marketing organizations to offer and sell the securities of various companies to investors. Brost recruited and trained salespersons to bring in new investors under a multi-level marketing model. These salespersons acted under Brost’s direction in offering and selling the securities. The Order further alleges that on November 12, 2010, a default judgment was entered against Brost, permanently enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Merendon Mining (Nevada) Inc., et al., Civil Action Number C10-955RAJ, in the United States District Court for the Western District of Washington.
A hearing will be held by an administrative law judge to determine whether the allegations contained in the Order are true, to provide the Respondent an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions are appropriate and in the public interest. The Order requires the Administrative Law Judge to issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission’s Rules of Practice. (Rel. 34-63392; File No. 3-14144)
In the Matter of Priscilla G. Sabado
On November 30, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 15(b)(6) and 21C of the Securities Exchange Act of 1934, and Section 203(f) of the Investment Advisers Act (Order) against Priscilla G. Sabado. The Division of Enforcement alleges that Sabado, a former AXA Advisors registered representative, made material misrepresentations and omissions while offering oil and gas working interest to several clients. According to the Division of Enforcement, Sabado misrepresented or omitted material information regarding the risks of the returns, the projected returns and her family’s investment.
Based on the above, the Division of Enforcement alleges that Sabado willfully violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. A hearing will be scheduled before an Administrative Law Judge to determine whether the allegations contained in the Order are true, and to provide the Respondent an opportunity to dispute these allegations, and to determine what, if any, remedial sanctions are appropriate and in the public interest.
The Order requires the Administrative Law Judge to issue an initial decision no later than 300 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission’s Rules of Practice. (Rel. 33-9160; 34-63394; IA-3116; File No. 3-14145)