Advertisement
YOU ARE HERE: LAT HomeCollections

CALIFORNIA | SECURITIES | THE STATE

Father and Son Settle SEC Fraud Charges

May 29, 1997|(Bloomberg News)

A father-and-son team operating Balance for Life Inc., a Beverly Hills-based vitamin supplement company, agreed to settle charges they defrauded investors of $1.4 million by misleading them into thinking the firm's stock was about to trade on the Nasdaq stock market. Robert K. Steele Sr., 49, of Los Angeles, and Robert K. Steele Jr., 26, of Dana Point, neither admitted nor denied the SEC allegations. The SEC complaint, filed in federal court in Denver, alleged that Balance for Life was never listed on Nasdaq and its owners diverted most of the funds to operating the company and a subsidiary brokerage without paying investors. Under the settlement, the younger Steele agreed to refund $29,122 in commissions he earned enticing investors. He also was barred from the securities industry for three years. The senior Steele was indefinitely barred from the securities industry last October. Citing their inability to pay, the SEC waived penalties and fines for both.

Advertisement
Los Angeles Times Articles
|
|
|