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Order Entered in SEC Case Against Great White
WACO, Texas, July 30 /PRNewswire/ -- On July 28, 1999, the Securities and Exchange Commission filed a complaint in federal court alleging various wrongdoings, including but not limited to securities fraud, committed by Great White Marine & Recreation, Inc. (OTC Bulletin Board: JAWS) (the "Company"), A. Colin Smith and Kenneth Ursrey. In connection therewith, the SEC made application for a temporary restraining order, appointment of a receiver, and other substantive and procedural orders against the Company and Mr. Smith, and for the issuance of an asset freeze order and order for accounting against Mr. Ursrey.
The Court ordered that the Company and Smith be enjoined from violating Sections 5(a) and 5(c) and 17 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.
No receiver was appointed by the Court at this time, and, based upon the agreement to certain conditions set forth below, the Court declined to find compelling reason for the imposition of an asset freeze at this time. Without admitting or denying any of the allegations in the SEC's complaint, the Company, and Mr. Smith and Mr. Ursrey agreed to take the following actions which were then ordered by the court on July 30, 1999.
The Company and its affiliates or subsidiaries have agreed not to make an issuance of or transaction in its own or any other securities other than conversion of warrants or other convertible securities upon request and payment by the holder thereof. The Company has agreed not to make any payment, expenditure of funds, or incur any additional liability except in the ordinary course of business. The company has agreed to provide the court and the SEC with a weekly schedule of disbursements of funds commencing on August 3, 1999 and each Tuesday thereafter until the hearing on the preliminary injunction.
Mr. Smith and Mr. Ursrey have agreed not to make, directly or indirectly, any transactions in any securities until the conclusion of the hearing on the SEC's preliminary injunction to be held on August 25, 1999.
The Company and Mr. Smith have been enjoined from destroying, altering, concealing or disposing of any of the books or records of the Company or Mr. Smith.
The Company and Mr. Smith and Mr. Ursrey have agreed to make an interim accounting to be filed with the court and served on the SEC detailing: (i) their receipt and disbursement of all monies and other benefits received from the sale of the Company's securities; (ii) the identity and use, and, to the extent possible, location, of all proceeds from such sales of Great White securities, to the extent reasonably identifiable, and of all of their current assets; and (iii) the identity and location of all accounts with any financial and brokerage institutions maintained in the name of the Company, Mr. Smith or Mr. Ursrey, or for the benefit of any of them from January 1, 1998 forward.
Mr. Smith has agreed to be placed on administrative leave from his position as chief executive officer and a director of the Company until August 25, 1999, and has assigned his duties to Christopher Smith, Sales Manager of the Company.
The parties have agreed to submit their disputes to mediation no later than August 20, 1999. In the event that the mediation is unsuccessful, a hearing on the SEC's request for a preliminary injunction will be held on August 25, 1999.
Great White Marine and Recreation, Inc. is an international distribution company of marine watercraft and recreational vehicles and related products through its network of dealers extending from the Southwestern U.S. into Central and South America, and Mexico. Brand name products currently being distributed include Mercury(TM) outboard motors, Mercury QuickSilver(TM) two- cycle engine oil, Polaris(TM) personal watercraft and all-terrain vehicles, an extensive line of Fisher(TM) fiberglass and aluminum boats, Cruisers(TM) yachts, Viking(TM) Sport Cruisers, Glastron(TM), Skeeter, and Pursuit(TM) offshore fishing boats. Corporate headquarters for Great White are in Waco, Texas with sales, servicing and warehousing facilities in Monterrey and Puerto Vallarta, Mexico, Pompano Beach, Florida, and Laredo, Texas.
The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward looking statements be subject to the "safe harbors" provision of the Private Securities Litigation Reform Act of 1995.
SOURCE Great White Marine & Recreation, Inc.
CO: Great White Marine & Recreation, Inc.; Securities and Exchange Commission
ST: Texas
IN: LEI
SU: LAW
07/30/99 16:06 EDT prnewswire.com |
