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| | Initial Decision: Vladislav Steven Zubkis, Release No. 279; File No. 3-11625 |
 | | Upon the same authorization, IBI issued over 1.1 million shares to Z3 Capital and 280,000 shares to Zubkis, all of which purported to be "restricted" within the meaning of Rule 144 of the Securities Act. |
 | | On the preceding facts, the District Court found that Zubkis violated Sections 5(a), 5(c), and 17(a) of the Securities Act, and Sections 10(b), 15(b), and 15(c)(1) of the Exchange Act and Rules 10b-5, 15c1-2, 15c1-5, and 15c1-6, thereunder. |
 | | The IBI stock sold by Z3 Capital salespeople, was a penny stock within the meaning of Section 3(a)(51) and Rule 3a51-1(d) of the Exchange Act, in that it was not a reported security and sold for less than five dollars per share. |
| www.sec.gov /litigation/aljdec/id279lam.htm (2681 words) |
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