(March 8 – 16:20 ET) – The U.S. Securities and Exchange Commission has settled the enforcement action it brought last year against Yun Soo Oh Park, the Internet stock picker known as “Tokyo Joe”.

Under the terms of the settlement, Park and his firm Societe Anonyme consented to entry of a federal District Court order that permanently enjoins them from violating the antifraud and other provisions of the federal securities laws. The settlement, which was as approved today by the District Court for the Northern District of Illinois, also orders Park and Societe Anonyme to pay US$324,934 in ill-gotten gains and US$429,696 in civil penalties.

Park and Societe Anonyme, didn’t admit or deny the allegations. They also agreed to post a hyperlink to the court order on the home page of the Tokyo Joe Web site for 30 days.

“This case has established groundbreaking precedent: Those who are in the business of offering investment advice on the Internet may take on the same duties and responsibilities as other investment advisors,” said SEC enforcement director Richard Walker.

“Today’s settlement demonstrates that we will not countenance undisclosed conflicts of interest or other fraudulent conduct from those recommending purchases or sales of securities – whether on the web or elsewhere,” Walker added.

In its complaint, filed in January 2000, the SEC alleged that Park defrauded members of his Societe Anonyme by failing to disclose that, in several instances, he had already purchased shares of the stock that he was recommending. Park also failed to disclose that he planned to sell his shares into the buying flurry and subsequent price rise that followed his recommendations, an illegal practice known as “scalping.”

The commission also charged that Park touted one company to members of Societe Anonyme and to the public without disclosing that he had received shares of stock in the company in exchange for his recommendation. Finally, the SEC charged that the past performance results posted on Park’s Web site were materially false and misleading.