U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16236/August 2, 1999

SECURITIES AND EXCHANGE COMMISSION v. LAMBERT D. VANDER TUIG, Civil Action No. 99-07900 RAP(RCx) (C.D. Cal.)

On August 2, 1999, the Securities and Exchange Commission sued a former securities industry professional for manipulating the stock of a Michigan footwear manufacturer, Fastlane Footwear, Inc. The lawsuit charges the defendant with fraud and seeks the return of profits realized from the manipulation. The Commission alleges that from June 26, 1996 through July 8, 1996, Lambert D. Vander Tuig, age 40 and a resident of Coto de Caza, California, pumped up the price of Fastlane stock 56%, from its initial sale price of $3.12 to $4.88 a share.

In its lawsuit, which was filed in federal court in Los Angeles, the Commission charged Vander Tuig with, among other things, buying and selling Fastlane stock using nominee accounts and engaging in wash sale transactions between the accounts. This was done, according to the Commission, to dominate and control the supply of, and create artificial demand for, the security, thereby pushing up the price.

Fastlane, based in Jackson, Michigan, is a small non-reporting company which had assets and revenues of approximately $1 million during the relevant period.

As part of its lawsuit, the Commission charged Vander Tuig with violating the antifraud provisions, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as the registration provisions, Sections 5(a) and 5(c) of the Securities Act. The Commission is seeking a permanent injunction, disgorgement of all ill-gotten gains plus prejudgment interest and civil penalties.

This enforcement action is part of the Commission's four-pronged approach to attacking microcap fraud: enforcement, inspections, investor education and regulation. For more information about the SEC's response to microcap fraud and the litigation release for this case, visit the SEC's Microcap Fraud Information Center at http://www.sec.gov/news/extra/microcap.htm.