(March 15 – 17:30 ET) – A Toronto-based lawyer has been ordered to pay more than US$2.8 million in a U.S. securities fraud case.

The Securities and Exchange Commission announced today that on March 12 U.S. District Judge for the Southern District of New York, the Honorable William Pauley III, entered a final judgment against defendant Simon Rosenfeld, a Toronto lawyer and former president, treasurer and director of Synpro Environmental Services Inc.

In connection with his activities with Synpro, it was determined that Rosenfeld violated the antifraud, registration and other provisions of the federal securities laws, and the court previously enjoined Rosenfeld from violating these provisions of the securities laws. Based on his violations, the court’s final judgment requires him to pay $1,093,189 in disgorgement (all figures in U.S. dollars), $630,386.63 in prejudgment interest, and $1,093,189 in civil penalties, for a total award of $2,816,764.63.

On April 21, 2000, the court entered a partial default judgment against Rosenfeld. It found that from 1991 through 1994, Rosenfeld orchestrated a “pump and dump” scheme involving Synpro common stock. He disseminated materially false and misleading information, and failed to disclose material information, in a number of Synpro’s annual, quarterly and other reports. He also failed to disclose the related party nature of numerous transactions to which Synpro was a party.

Rosenfeld made these misrepresentations to make Synpro appear to have significant value, and “pump up” the value of its stock, and thereby permit Rosenfeld to dump millions of unregistered shares of his personal holdings in Synpro stock through a complex network of offshore corporations and brokerage accounts to unsuspecting investors.

The court also found that Rosenfeld took a number of actions to “condition the market” for Synpro stock. He was able to sell his Synpro stock by, among other things, making undisclosed stock and/or cash kickbacks to defendant John Yakimczyk, a broker, and other stock promoters, for inducing investors to purchase the Synpro shares in the market. The SEC previously reached settlements with Yakimczyk and defendant Terry Kochanowski, a former vice president and director of Synpro.

The partial final judgment entered against Rosenfeld permanently enjoins him from violating U.S securities laws, and it bars him from serving as an officer or director of a public reporting company.