Loch Harris Faces SEC Fraud Investigation; Likely Delisting
Washington, Nov. 3 (Bloomberg) -- Loch Harris Inc. said it faces a Securities and Exchange Commission fraud investigation and expects to lose its listing on Nasdaq's Over-the-Counter Bulletin Board, according to a statement distributed by Business Wire.
The statement by Austin, Texas-based Loch Harris, which owns a land-mine detection division and other businesses, said the SEC investigation is focused on ``whether or not the company and others may have violated the registration, antifraud and periodic reporting requirements of the federal securities laws.''
The company statement also said Loch Harris is working to complete a delinquent annual report filing to the SEC, yet ``does not currently anticipate'' the report will be filed by a Nov. 17 deadline that, if missed, will result in delisting of its shares from the OTC Bulletin Board. The company also said it does not expect to meet a Nov. 15 deadline for the filing of a quarterly report.
The company's spokesman couldn't be reached for comment. The SEC's policy is to neither confirm nor deny the existence of investigations involving specific companies.
Loch Harris, which buys companies and technologies it plans to develop as stand-alone businesses, had disclosed the existence of an SEC investigation last month, without giving any details. Today's statement said the investigation ``is not routine.'' The company said it made that distinction in response to a ``publicly issued'' statement indicating the probe was routine. Today's press release didn't way where that statement was made.
Loch Harris shares, which traded for as much as $5.95 on Feb. 8, have fallen 95 percent from that level. The shares rose 1 cent today to 28 cents.
Among Loch Harris's businesses is Chemical Detection Technology Inc., which is developing a portable landmine detector.
Loch Harris's statement said the company is cooperating with the SEC investigation, yet could face conflict with the agency because it ``plans to protect the confidentiality of what it considers to be its trade secrets and other proprietary information.''
The company demonstrated its landmine detector for members of Congress and foreign dignitaries on the grounds of the U.S. Capital in mid-September, according to a company press release.
Nov/03/2000 20:16 ET
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