SEXI: Mostly Fact, A Little Fiction, Not Vicious Attacks Message Board

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Microcap & Penny Stocks : SEXI: Mostly Fact, A Little Fiction, Not Vicious Attacks

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To: William Hicks who wrote (6806)	11/11/1996 11:09:00 AM
From: Findit	of 13351

To All - Miami Herald take on SEC investigation: (sorry if already posted) SEC Slams Coral Gables, Fla., Videoconferencing Firm with Fraud Charge Source: The Miami Herald The Miami Herald via Knight-Ridder/Tribune via Individual Inc. : By David Poppe Knight-Ridder/Tribune Business News Nov. 8--The U.S. Securities and Exchange Commission went to court Thursday to allege a massive securities fraud took place at Coral Gables-based Systems of Excellence Inc. Regulators also froze the assets of the company's chairman, Charles O. Huttoe, and alleged Huttoe and his family reaped at least $9.7 million through illegal stock sales. In a complaint filed in federal court in Washington, the SEC charged that Huttoe orchestrated a "massive and ongoing market manipulation." Systems of Excellence, traded under the symbol SEXI, purports to manufacture a state-of-the-art video teleconferencing system. The SEC alleges the company issued numerous false press releases regarding sales of videoconferencing equipment and knowingly made false claims about future sales targets and the prospects of companies it acquired. Huttoe allegedly issued tens of millions of shares of unregistered stock, including substantial amounts to family members. In February, Systems of Excellence claimed to have roughly 11 million shares outstanding. In reality, it had more than 40 million shares outstanding. By August, the number had risen to 64 million shares. During the summer, shares traded as high as $4.50. The complaint names 11 other companies and people affiliated with Huttoe -- including his wife Karen Purvis, his mother Josephine Brooks, and his niece Tammy Jo Perkins -- as participating in the fraud. The family is charged with selling at least 4.1 million shares of unregistered stock for $9.7 million. The SEC obtained a court order on Thursday that prohibits Huttoe from leaving the country. The SEC is also seeking to freeze several bank accounts. Huttoe couldn't be reached for comment. The SEC said the 49-year-old Miami resident failed to comply with subpoenas ordering him to produce documents and identify bank accounts. Systems of Excellence said in October that it put Huttoe on administrative leave. The company said Thursday evening that it would issue a statement about the SEC suit today. Systems of Excellence stock closed at 44 cents on Thursday.

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