Mantria Update #15

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934 Release No. 61654 / March 5, 2010
ADMINISTRATIVE PROCEEDING File No. 3-13760
:
In the Matter of
:
ORDER MAKING FINDINGS
:
AND IMPOSING REMEDIAL
Donna M. McKelvy, Respondent.
: : : :
SANCTIONS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934
:
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest to enter this Order Making Findings and Imposing Remedial Sanctions pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Donna M. McKelvy (“McKelvy” or “Respondent”).
II.
Following the institution of these proceedings on January 22, 2010, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over her and the subject matter of these proceedings, and the findings contained in Section
III.2 below, which are admitted, Respondent consents to the entry of this Order Making Findings, and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Order”), as set forth below.
III.
On the basis of this Order and Respondent’s Offer, the Commission finds that:
1.
From at least September 2007, through at least November 2009, Respondent used the titles of vice president and president of Speed of Wealth, LLC, and was involved in investor relations. Respondent is also a part owner of Speed of Wealth, LLC. Respondent does not hold any securities licenses and she acted as an unregistered broker in connection with her offer and sale of securities. Specifically, Respondent made use of the mails or means or instrumentalities of interstate commerce to effect transactions in or to induce or attempt to induce the purchase or sale of a security without being registered with the Commission in accordance with Section 15(b) of the Exchange Act.
2.
On December 16, 2009, an order of permanent injunction was entered by consent against McKelvy, permanently enjoining her 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 Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Mantria Corporation, et al., Civil Action Number 1:09-CV02676,
in the United States District Court for the District of Colorado.
3.
The Commission’s complaint alleged that, from at least September 2007 through at least November 2009, Defendants, including McKelvy, sold the securities of Mantria Corporation and its subsidiaries and affiliates by making materially false representations to investors regarding, among other things, the intended use of the proceeds from the sale of such securities, the past rates of return that had been paid to other investors in such securities, and regarding the operational success of the companies issuing the securities. The complaint also alleged that Defendants omitted the material fact that the proceeds from the sale of these securities were used, in Ponzi-like fashion, to pay off earlier investors in these securities. The complaint further alleged that McKelvy acted as an unregistered broker and sold unregistered securities.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction agreed to in Respondent McKelvy’s Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent McKelvy be, and hereby is barred from association with any broker or dealer;
Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a
customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
For the Commission, by its Secretary, pursuant to delegated authority.
Elizabeth M. Murphy Secretary