ENFORCEMENT PROCEEDINGS CIVIL ACTION AGAINST LOCH HARRIS INC.
On December 18, 2000, the Commission filed an Application for an Order
to Show Cause in the United States District Court for the Northern
District of Texas against Loch Harris Inc. The Application seeks to
have the Court order Loch Harris to produce documents and testimony,
pursuant to a subpoena duces tecum issued and served by the Commission
in connection with an ongoing Commission investigation. In its
Application, the Commission alleges that Loch Harris' failure to comply
with the subpoena has impeded the Commission's investigation.
According to the Commission's Application, its investigation involves,
among other things, whether Loch Harris and others may have made
materially false or misleading statements, or omitted material facts, in
connection with the offer, purchase or sale of Loch Harris securities.
The possibly false and misleading statements concern technologies or
devices known as "Eliminate Landmines Forever" (ELF) and Vacuum Multi-
constituent Monitor for Plasma (VAMMP). Over the last twelve months,
Loch Harris has issued a series of press releases regarding the
development, operation, capabilities, testing and production of ELF and
VAMMP. Loch Harris claims and press releases regarding these
technologies appear to have influenced trading in the common stock of
the company. The Commission's Application alleges that the subpoenaed
documents and testimony are necessary to a determination as to whether
Loch Harris and others have violated or are about to violate provisions
of the federal securities laws. [SEC v. Loch Harris Inc., Misc. Action
No. 4-00-MC-0046-Y, USDC, NDTX, Fort Worth Division] (LR-16856)
sec.gov |
