To: Mike M who wrote (4576 ) 9/10/2003 8:40:37 PM From: StockDung Respond to of 5582 Gurian ? Ambramo? Soverign ? GNLN? the noose tightens ============================ SEC Files Suit Against Benil Finance In HiEnergy Matter Tuesday September 9, 5:57 pm ET By Carol S. Remond, Of Dow Jones Newswires NEW YORK (Dow Jones)--The Securities and Exchange Commission said Tuesday that it filed a subpoena enforcement action against Benil Finance Ltd. in the U.S. District Court for the Southern District of Florida. ADVERTISEMENT Under a subpoena issued by the SEC on June 20, Benil was required to produce requested documents by Aug. 8. The SEC is seeking information relating to an ongoing investigation into the ownership of HiEnergy Technologies Inc. . The stock of HiEnergy, a development stage company that claims to have developed a new technology to detect explosives, fell sharply in February after a Dow Jones Newswires column highlighted connections between two of the company's investors and Philip Gurian. Gurian pleaded guilty in 2000 to federal charges that include mail fraud and conspiracy to commit securities fraud. He awaits sentencing. Benil Finance is an offshore entity which reported a 9% ownership of the stock of HiEnergy in a filing with the SEC last year. The SEC said Jeannine Gurian, Philip's mother, was Benil's president. Meanwhile, Rheal Cote, her boyfriend, was Benil's vice president. The SEC said it is seeking information regarding the ownership of HiEnergy's stock, communications with HiEnergy investors or Philip Gurian or both, and Benil's bank and brokerage records. Separately, the SEC has subpoenaed Jeannine Gurian and Rheal Cote who both attempted unsuccessfully to quash the agency's requests for information in the U.S. District Court for the Southern District of Florida. Court documents filed by the SEC show that the SEC is investigating a scheme through which Jeannine Gurian's son "controlled or is controlling HiEnergy without disclosing his involvement to the commission or HiEnergy investors." The SEC said Jeannine Gurian and Rheal Cote owned about 80% of the company's shares in 2002. The SEC said Tuesday that Benil provided information about two brokerage accounts but refused to produce documents relating to "at least six brokerage accounts and two bank accounts whose existence is known to the staff." The SEC said Benil has informed the SEC that it has no obligation to "produce documents not in Jeannine Gurian's personal possession." Court documents show that the SEC formally began investigating whether antifraud and/or reporting provisions of the federal securities laws were violated by persons or entities in connection with the offer, sale or purchase of HiEnergy's stock in early April. The SEC said that information obtained during its investigation "indicates that HiEnergy, Philip Gurian, Jeannine Gurian, and other individuals and entities may have violated, or aided and abetted violations of, laws requiring disclosure of control persons." The SEC said it "has reason to believe that Philip Gurian controlled, or continues to control, HiEnergy through his undisclosed ownership of as much as 71% of HiEnergy stock." HiEnergy said in April that it was cooperating with the SEC investigation. A lawyer representing HiEnergy said last week that the company continues to cooperate with the SEC investigation. In 1999, Philip Gurian was charged with mail and securities fraud in connection with the "Mob on Wall Street" case in the U.S. District Court for the Middle District of Florida. Published reports have identified him as a front man for Philip Abramo, a captain in the Decavalcante organized crime family. In June, Abramo was found guilty in New York court of a slew of racketeering charges related to murder, extortion and loan-sharking. He will be sentenced in October. Abramo and Gurian are now scheduled to be sentenced in early December. -By Carol S. Remond, Dow Jones Newswires; 201-938- 2074; carol.remond@dowjones.com