Escala settles with the SEC without incurring any liability:
Escala Group Announces Settlement of SEC Investigation
Monday March 23, 2009, 3:55 pm EDT
IRVINE, Calif.--(BUSINESS WIRE)--Escala Group (ESCL.PK), a global collectibles company in stamps, coins, precious metals trading, and art and antiques, today announced that it has reached a settlement with the United States Securities and Exchange Commission (the “SEC”), resolving charges filed today against the Company in connection with the SEC’s investigation into the Company’s historical transactions with its majority-owned shareholder, Afinsa Bienes Tangibles, S.A.
Without admitting or denying the allegations made in the SEC’s complaint, the Company consented to a permanent injunction against any future violations of certain provisions of the federal securities laws. The Company cooperated fully with the SEC during the course of the investigation. No fines, civil penalties or monetary sanctions were assessed against the Company. The settlement is subject to court approval.
Greg Roberts, Escala Group’s President and CEO, said, “We are very pleased with this resolution of the SEC investigation as it relates to the Company. We are continuing to focus on the future of Escala Group, and are working with the Staff of the SEC’s Office of the Chief Accountant and Division of Corporation Finance as we move towards becoming current in our SEC filings.”
The SEC also filed an action today in the United States District Court for the Southern District of New York against Greg Manning, formerly the CEO and a director of the Company, and Larry Crawford, formerly the CFO of the Company, in connection with its investigation. The Company understands that this action has not been settled. The Company terminated Mr. Manning’s arrangement with the Company for cause in April 2007. Mr. Crawford left the Company in June 2006.
Additional information regarding the settlement will be set forth in the Company’s Report on Form 8-K, as filed with the SEC.
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