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FELLOW PENNY STOCKBASHER BITES THE DUST!!!
sec.gov
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COMMISSION OBTAINS ORDER OF PERMANENT INJUNCTION AGAINST RONALD REECE
The Commission announced today that Judge Patrick Michael Duffy of the United
States District Court for the District of South Carolina entered an Order of
Permanent Injunction and Other Relief against Ronald V. Reece (Reece)
restraining and enjoining him from further violations of Section 17(b) of the
Securities Act of 1933 (Securities Act). Reece consented to the entry of the
permanent injunction without admitting or denying the allegations of the
Commission's complaint. The Order also directed that Reece pay a $10,000 civil
penalty within 30 days following the entry of the Order.
The Commission's complaint, filed on July 1, 1998, alleges that Green Oasis
Environmental, Inc. (Green Oasis) and Carraway published a series of false and
misleading press releases prepared by the public relations firm the company
retained, owned and controlled by Raymond C. O'Brien (O'Brien). Carraway paid
O'Brien and others to publish purportedly objective descriptions about the
company and to encourage positive discussion about the company in Internet news
groups. Carraway and O'Brien used these false press releases to increase
investor interest in the company. Carraway and O'Brien encouraged Ronald V.
Reece (Reece) to publish positive information about the company in numerous
Internet news group messages he wrote and in an electronic newsletter he
published about the company. In his publications, Reece claimed to be merely an
interested investor and denied receiving any consideration from the company. In
fact, the company gave Reece a valuable discount on his purchase of the
company's securities and paid his travel expenses, all of which he failed to
disclose in his publications.
The complaint seeks a permanent injunction against the defendants Green Oasis
and Carraway to prevent their future violations of Sections 5(a), 5(c) and
17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the
Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder; a
permanent injunction against defendant O'Brien to prevent his future violations
of Sections 5(a), 5(c), 17(a) and 17(b) of the Securities Act, and Sections
10(b) and 15(a)(1) of the Exchange Act and Rule 10b-5 thereunder; and a
permanent injunction against defendant Reece to prevent his future violation of
Section 17(b) of the Securities Act. The complaint also seeks an accounting,
disgorgement, prejudgment interest and civil penalties from defendants Carraway
and O'Brien and civil penalties from defendant Reece. The commission's
complaint also seeks disgorgement from Mary Ann Carraway of the gains from her
sales of Green Oasis securities. Judge Duffy previously entered an Order of
Permanent Injunction against Green Oasis in August 1998. [SEC v. Green Oasis
Environmental, Inc., William D. Carraway, Raymond C. O'Brien and Ronald V.
Reece, Defendants, and Mary Ann Carraway, Relief Defendant, Civil Action No.
2:98-1913-23, D.S.C.] (LR-16032) |
