Initial Decision Release No. 1322

Administrative Proceeding

File No. 3-18037

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

In the Matter of

dELiA*s Inc. and

Global Energy, Inc.

Initial Decision of Default

November 30, 2018

Appearance: James M. Carlson and Neil J. Welch, Jr., for the Division 

of Enforcement, Securities and Exchange Commission

Before: Cameron Elliot, Administrative Law Judge

SUMMARY

This initial decision revokes the registration of the registered securities 

of Respondents dELiA*s Inc. and Global Energy, Inc., due to their failures to 

timely file required periodic reports with the Securities and Exchange 

Commission.

INTRODUCTION

On June 20, 2017, the Commission issued an order instituting 

proceedings (OIP) pursuant to Section 12(j) of the Securities Exchange Act of 

1934. The OIP alleges that each Respondent has a class of securities 

registered with the Commission pursuant to Exchange Act Section 12(g) and 

is delinquent in its periodic filings. 

A different administrative law judge was originally assigned to this 

proceeding and issued an initial decision of default against Respondents. 

dELiA*s Inc., Initial Decision Release No. 1166, 2017 SEC LEXIS 2658 (ALJ 

Aug. 29, 2017). The Commission vacated that decision following the Supreme 

Court’s decision in Lucia v. SEC, 138 S. Ct. 2044 (2018); see Pending Admin. 

Proc., Securities Act of 1933 Release No. 10536, 2018 SEC LEXIS 2058, at *2-

3 (Aug. 22, 2018). The matter was then reassigned to me to provide 
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Respondents with the opportunity for a new hearing. Pending Admin. Proc., 

Admin. Proc. Rulings Release No. 5955, 2018 SEC LEXIS 2264, at *2-3 (ALJ 

Sept. 12, 2018). Respondents were directed to submit proposals for the 

conduct of further proceedings. dELiA*s Inc., Admin. Proc. Rulings Release 

No. 5998, 2018 SEC LEXIS 2416, at *1 (ALJ Sept. 18, 2018). Neither did. I 

have therefore proceeded under the Commission’s instruction to not give 

weight to or otherwise presume the correctness of any prior opinions, orders, 

or rulings issued by the prior administrative law judge. Pending Admin. 

Proc., 2018 SEC LEXIS 2058, at *4.

Previously, I independently reviewed the evidence submitted by the 

Division and determined that Respondents were served with the OIP by July 

18, 2017. dELiA*s Inc., Admin. Proc. Rulings Release No. 6273, 2018 SEC 

LEXIS 3026, at *1-2 (ALJ Oct. 31, 2018). Because Respondents failed to 

timely answer, I ordered them to show cause why the registration of their

securities should not be revoked by default due to their failures to file 

answers or otherwise defend this proceeding. Id. at *2-3. To date, 

Respondents have failed to answer, submit proposals for the conduct of 

further proceedings, respond to the show cause order, or otherwise defend 

this proceeding.

FINDINGS OF FACT

Respondents are in default for failing to file answers, file proposals for 

the conduct of further proceedings, or otherwise defend the proceeding. See

OIP at 3; 17 C.F.R. §§ 201.155(a)(2), .220(f); Pending Admin. Proc., 2018 SEC 

LEXIS 2058, at *4. Accordingly, as authorized by Rule of Practice 155(a), 17 

C.F.R. § 201.155(a), I find the following allegations in the OIP to be true.

dELiA*s Inc., Central Index Key (CIK) No. 1337885 and ticker symbol 

DLIAQ, is a forfeited Delaware corporation located in New York, New York, 

with a class of securities registered with the Commission pursuant to 

Exchange Act Section 12(g). The company is delinquent in its periodic filings 

with the Commission, having not filed any periodic reports since it filed a 

Form 10-Q for the period ended August 2, 2014, which reported a net loss of 

over $25.2 million for the prior six months. As of June 9, 2017, the company’s 

stock was quoted on OTC Link operated by OTC Markets Group, Inc., had 

seven market makers, and was eligible for the “piggyback” exception of 

Exchange Act Rule 15c2-11(f)(3).

Global Energy, Inc., CIK No. 1090967 and ticker symbol GEYI, is a 

Nevada corporation located in Ramat Gan, Israel, with a class of securities 

registered with the Commission pursuant to Exchange Act Section 12(g). The 

company is delinquent in its periodic filings with the Commission, having not 
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filed any periodic reports since it filed a Form 10-Q for the period ended June 

30, 2014, which reported a net loss of $344,000 for the prior six months. As of 

June 9, 2017, the company’s stock was quoted on OTC Link, had five market 

makers, and was eligible for the “piggyback” exception of Exchange Act Rule 

15c2-11(f)(3).

In addition to their repeated failures to timely file periodic reports, 

Respondents failed to heed delinquency letters sent to them by the 

Commission’s Division of Corporation Finance requesting compliance with 

their periodic filing obligations or, through their failures to maintain valid 

addresses on file with the Commission as required by Commission rules, did 

not receive such letters.

CONCLUSIONS OF LAW

Exchange Act Section 13(a) and the rules promulgated thereunder 

require issuers of securities registered pursuant to Exchange Act Section 12 

to file with the Commission current and accurate information in periodic 

reports. Specifically, Rule 13a-1 requires issuers to file annual reports, and 

Rule 13a-13 requires domestic issuers to file quarterly reports. See 17 C.F.R. 

§§ 240.13a-1, .13a-13. Compliance with these reporting requirements is 

mandatory. America’s Sports Voice, Inc., Exchange Act Release No. 55511, 

2007 SEC LEXIS 1241, at *12 (Mar. 22, 2007), recons. denied, Exchange Act 

Release No. 55867, 2007 SEC LEXIS 1239 (June 6, 2007). Scienter is not 

required to establish violations of Exchange Act Section 13(a) and Rules 13a1 and 13a-13. See SEC v. McNulty, 137 F.3d 732, 740-41 (2d Cir. 1998); SEC 

v. Wills, 472 F. Supp. 1250, 1268 (D.D.C. 1978). Respondents failed to timely 

file periodic reports. As a result, Respondents violated Exchange Act Section 

13(a) and Rules 13a-1 and 13a-13.

SANCTION

Under Exchange Act Section 12(j), the Commission is authorized, “as it 

deems necessary or appropriate for the protection of investors,” to revoke the 

registration of a security or suspend its registration for a period not 

exceeding twelve months if it finds, after notice and an opportunity for 

hearing, that the issuer of the security has failed to comply with any 

provision of the Exchange Act or rules thereunder. In determining what 

sanctions will adequately protect investors, the Commission “consider[s], 

among other things, the seriousness of the issuer’s violations, the isolated or 

recurrent nature of the violations, the degree of culpability involved, the 

extent of the issuer’s efforts to remedy its past violations and ensure future 

compliance, and the credibility of its assurances, if any, against further 
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violations.” Gateway Int’l Holdings, Inc., Exchange Act Release No. 53907, 

2006 SEC LEXIS 1288, at *19-20 (May 31, 2006).

Respondents’ failures to file required periodic reports are serious because 

the failures constitute violations of a central provision of the Exchange Act. 

The purpose of periodic reporting is “to supply investors with current and 

accurate financial information about an issuer so that they may make sound 

[investment] decisions.” Gateway Int’l Holdings, Inc., 2006 SEC LEXIS 1288, 

at *26. The reporting requirements are the primary tool that Congress 

“fashioned for the protection of investors from negligent, careless, and 

deliberate misrepresentations” in the sale of securities. Eagletech Commc’ns, 

Inc., Exchange Act Release No. 54095, 2006 SEC LEXIS 1534, at *12 (July 5, 

2006) (quoting SEC v. Beisinger Indus. Corp., 552 F.2d 15, 18 (1st Cir. 1977)). 

Respondents’ violations are also recurrent in that they repeatedly failed to 

file periodic reports for over four years. See Nature’s Sunshine Prods., Inc., 

Exchange Act Release No. 59268, 2009 SEC LEXIS 81, at *20 (Jan. 21, 2009) 

(failing to file seven required periodic reports due over a two-year period is 

recurrent); Impax Labs., Inc., Exchange Act Release No. 57864, 2008 SEC 

LEXIS 1197, at *25-26 (May 23, 2008) (respondent’s failure to make eight 

filings over an eighteen-month period considered recurrent). Respondents

are culpable because they knew or should have known about the reporting 

requirements. They further failed to heed the delinquency letters sent to 

them by the Division of Corporation Finance. Even if Respondents did not 

receive such letters due to their failures to maintain valid addresses on file 

with the Commission as required by Commission rules, the other factors 

weigh in favor of revocation, and scienter is not necessary to establish 

grounds for revocation. See China-Biotics, Inc., Exchange Act Release 

No. 70800, 2013 SEC LEXIS 3451, at *37 & n.60 (Nov. 4, 2013). In any 

event, there is no indication that their violations were inadvertent or 

accidental. Id. Finally, Respondents have not answered the OIP, submitted 

proposals for the further conduct of this proceeding, responded to the show 

cause order, or otherwise participated in the proceeding to address whether 

they have made any efforts to remedy their past violations, and have made no 

assurances against further violations.

Considering these delinquencies, it is necessary and appropriate for the 

protection of investors to revoke the registration of each class of Respondents’ 

registered securities.
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ORDER

It is ORDERED that, pursuant to Section 12(j) of the Securities 

Exchange Act of 1934, the registrations of each class of registered securities 

of Respondents dELiA*s Inc. and Global Energy, Inc., are hereby REVOKED.1

This initial decision shall become effective in accordance with and 

subject to the provisions of Rule 360, 17 C.F.R. § 201.360. Pursuant to that 

rule, a party may file a petition for review of this initial decision within 

twenty-one days after service of the initial decision. A party may also file a 

motion to correct a manifest error of fact within ten days of the initial 

decision, pursuant to Rule 111, 17 C.F.R. § 201.111(h). If a motion to correct 

a manifest error of fact is filed by a party, then a party shall have twenty-one 

days to file a petition for review from the date of the undersigned’s order 

resolving such motion to correct a manifest error of fact.

Also pursuant to Rule 360, this initial decision will not become final until 

the Commission enters an order of finality. 17 C.F.R. § 201.360(d). The 

Commission will enter an order of finality unless a party files a petition for 

review or a motion to correct a manifest error of fact or the Commission 

determines on its own initiative to review the initial decision as to a party. 

Id. If any of these events occur, the initial decision shall not become final as 

to that party. Id.

A respondent may move to set aside a default. Rule 155(b) permits the 

Commission, at any time, to set aside a default for good cause, to prevent 

injustice and on such conditions as may be appropriate. 17 C.F.R. 

§ 201.155(b). A motion to set aside a default shall be made within a 

reasonable time, state the reasons for the failure to appear or defend, and 

specify the nature of the proposed defense in the proceeding. Id.

_______________________________

Cameron Elliot

Administrative Law Judge

 

1 This order applies to all classes of Respondents’ securities registered 

under Section 12 of the Exchange Act, whether or not such securities are 

specifically identified by ticker symbol or otherwise in this initial decision.