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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: jmhollen who wrote (118395)	8/25/2003 3:40:45 PM
From: StockDung	Respond to of 150070

PERMANENT INJUNCTION ENTERED AGAINST SECURITIES RECIDIVIST AND CONVICTED FELON JOHN EHRMAN, IN UNREGISTERED OFFERING AND FRAUDULENT MANIPULATION SCHEME On August 18, the U.S. District Court for the Southern District of Texas entered an agreed permanent injunction against John N. Ehrman, former CEO of Rocky Mountain Energy Corporation. The permanent injunction enjoins Ehrman from future violations of the anti-fraud, securities- registration, issuer-reporting, beneficial-ownership, and principal- stockholder reporting provisions of the federal securities laws. The Securities and Exchange Commission had filed a civil action against Rocky Mountain, Ehrman, and Rocky Mountain's General Counsel, W. Roderick Johnson, on April 3, 2003, in connection with an illegal unregistered offering of Rocky Mountain securities and a fraudulent manipulation of the company's stock. The lawsuit was filed to halt an alleged fraudulent "pump-and-dump" scheme involving the securities of Rocky Mountain, a Houston-based oil-and-gas company whose stock is quoted on the OTC Bulletin Board. The complaint alleges that, from July 2002 to the present, Ehrman and Johnson used four bogus share-exchange transactions to secretly obtain control of approximately 50% of Rocky Mountain's issued and outstanding stock. Rocky Mountain and Ehrman issued a stream of glowing but false and misleading press releases to artificially inflate the price and trading volume of the company's stock. The press releases and other promotional statements, touted numerous "acquisitions" of valuable oil- and-gas properties, or agreements to acquire such properties, along with expected revenues and other benefits from the acquisitions. Rocky Mountain had neither the assets nor the financing to complete these acquisitions. Meanwhile, Ehrman and Johnson sold more than $800,000 of Rocky Mountain stock into the unsuspecting marketplace. In carrying out the fraudulent scheme, Ehrman allegedly caused Rocky Mountain to file false and misleading reports and registration statements with the Commission. Among other things, these filings failed to disclose that Ehrman and Johnson caused Rocky Mountain to issue approximately 47 million shares of stock in the four sham share- exchange transactions. The filings also misrepresented, among other things, Ehrman and Johnson's ownership, transfer, and sale of approximately 31 million of these shares. Ehrman was previously enjoined by the Commission in another fraudulent oil and gas scheme in 1990 (SEC v. Transwestern Oil & Gas, et. al., CA H- 90-1875 S.D. Tex) and barred from association with any broker, dealer, investment company, investment adviser or municipal securities dealer (In the Matter of Ehrman Investment Group, Inc., and John N. Ehrman, Administrative Proceeding File No. 3-7529). In a related criminal action, he also pleaded guilty to federal mail fraud charges and received a three year probated sentence (U.S. v. John N. Erhman, CR H-94- 23 S.D. Tex). [SEC v Rocky Mountain Energy Corporation, Inc., John N. Ehrman, W. Roderick Johnson, and John W. Ehrman, Jr. (Defendant Solely for Purposes of Equitable Relief) Case No. H-03-CV-1133 (U.S.D.C., S.D. Tex.)] (LR-18305)