Federal Information & News Dispatch, Inc. “Federal Documents “
The Commission has declared final the initial decision of an administrative law judge barring Aaron Tsai from associating with any broker or dealer. The initial decision found that Tsai had been permanently enjoined on April 4, 2005 , against violating the registration provisions, Section 5 of the Securities Act of 1933 and ordered to pay disgorgement of $4,464 plus prejudgment interest and a civil penalty of $4,464 . SEC v. Surgilight Inc. , No. 6:02 cv 431 ( M.D. Fla . Apr. 4, 2005 ). On March 1, 2010 , Tsai was again enjoined against violating the Securities Act Section 5, and against violating the reporting provisions, Exchange Act Sections 13(d)(1) and 16(a) and Rules 13d 1(a) and 16a 3. SEC v. Sierra Brokerage Servs., Inc., 608 F. Supp. 2d 923 (S.D. Ohio 2009). In addition to being enjoined, Tsai was ordered to pay disgorgement of $250,000 plus prejudgment interest. The law judge found that Tsai’s participation in the sale of unregistered shares to the public on the Over the Counter Bulletin Board, led to the harm of investors and the marketplace and netted him and his fellow defendants ill gotten gains of over $3 million .
Aaron Tsai has resided in Taiwan since 2002. Starting in 1996 through 2000, Tsai formed 101 “blank check” public shell corporations. From December 1998 through September 1999 and from July 2000 through October 2001 , Tsai was associated with broker dealers registered with the Commission. He was also president and owner of two registered broker dealers. (Rel. 34-63142; File No. 3 13835)