Routers;SEC sues Systems of Excellence (BB:SEXI), chairman
Reuters, Thursday, November 07, 1996 at 21:06
WASHINGTON, Nov 7 (Reuter) - The Securities and Exchange
Commission said on Thursday it filed a lawsuit against Systems
of Excellence Inc and its chairman, Charles Huttoe, for alleged
massive market manipulation involving shares of the company.
In a civil complaint filed in Federal District Court here,
the agency alleged that Huttoe, 49, a Miami resident, secretly
distributed about 43 million company shares to his family
members and corporations.
The SEC alleged he manipulated the market by issuing false,
favorable information concerning the company using a stock
promoter, and then selling his shares after the price had
artificially risen, the SEC said.
The SEC also alleged that Huttoe had "engaged in a massive
coverup" after the company's auditors found evidence of the
unregistered distribution of the company's shares and raised
questions about the matter in mid-September.
Systems of Excellence, a maker of video teleconferencing
equipment, has offices in McLean, Va., and Coral Gables, Fla.
Also named in the civil complaint are six companies
including stock promoter <SGA Goldstar Research Inc>, and
relatives of Huttoe, including his wife Karen Purvis, his mother
and a niece.
The SEC's action came after it suspended trading of the
company's stock for 10 days beginning October 7 because of
questions about the accuracy of information given to the market.
The SEC is seeking to recover at least $10 million that
investors lost because of Huttoe's and other defendants' alleged
wrongdoing.
The SEC has sought a temporary restraining order, a
preliminary injunction and other emergency relief, including the
freezing of the company's bank accounts.
Cynthia Gramer, a company spokesperson, said from Boston
that "a group of people have taken the company in hand."
"They are doing everything in their power to uncover what
was wrong and make it right," she said, adding "apparently there
was a great deal that needs to be fixed."
Huttoe could not be reached for comment. |
