U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16385 / December 10, 1999
SECURITIES AND EXCHANGE COMMISSION v. SATCOM, INC., SATCOM MARKETING
AND DISTRIBUTION, INC., TRICAP VENTURES, COASTAL ENTERPRISES, LLOYD D.
PAINE, SCOTT C. MESSIER AND LAWRENCE HARVEY, Civil Action No. 99 CV
0234 IEG LAB (S.D. Cal.)
The Securities and Exchange Commission ("Commission") announced that
on November 16, 1999, the Honorable Irma E. Gonzalez, United States
District Judge for the Southern District of California entered Final
Judgments of permanent injunction and other relief against Scott C.
Messier ("Messier") and Lawrence C. Harvey ("Harvey"), both residents
of San Diego, California. Messier, who is 35 years old, and Harvey,
who is 38 years old, were directors of SatCom, Inc. ("SatCom") and
SatCom Marketing and Distribution, Inc. ("SMD"), which are both
located in San Diego, California. The Final Judgments permanently
enjoin Messier and Harvey from future violation of the securities
registration and antifraud provisions of the federal securities laws.
The Final Judgments waive Messier and Harvey's payments of all
disgorgement and interest based upon sworn financial statements
demonstrating Messier and Harvey's inability to pay. Messier and
Harvey consented to the entry of the Final Judgments without admitting
or denying the allegations in the Commission's Complaint.
In its Complaint, the Commission alleged that Messier and Harvey
participated in the offer and sale of stock in SatCom and SMD from May
1997 to February 1999. The interests were sold to over 150 investors
nationwide, raising over $3 million. Messier and Harvey, and sales
agents acting at their direction, misrepresented to investors that
investor funds would be used for the development, manufacture,
marketing and sales of SatCom's products, including a reusable space
launch vehicle, and that no investor funds would be used for sales
commissions. However, only about 5% of the money raised from investors
was used for the stated purposes. Almost all of the investor funds
received were used for undisclosed purposes, including payment of
undisclosed sales commissions in excess of 40% to sales agents,
undisclosed payments to Messier and Harvey and operating costs of the
boiler room soliciting investors. The stock was not registered with
the Commission.
The Final Judgments enjoin Messier and Harvey from future violations
of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933,
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder.
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SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. SATCOM, INC., SATCOM MARKETING
AND DISTRIBUTION, INC., TRICAP VENTURES, COASTAL ENTERPRISES, LLOYD D. PAINE, SCOTT C.
The Securities and Exchange Commission announced that on November 16, 1999, the Honorable
Messier, who is 35 years old, and Harvey, who is 38 years old, were directors of SatCom, Inc.
The Final Judgments permanently enjoin Messier and Harvey from future violation of the
The Final Judgments waive Messier and Harvey's payments of all disgorgement and interest
In its Complaint, the Commission alleged that Messier and Harvey participated in the offer
The interests were sold to over 150 investors nationwide,
Messier and Harvey, and sales agents acting at their direction, misrepresented to investors
Almost all of the investor funds received were used for undisclosed purposes, including
The Final Judgments enjoin Messier and Harvey from future violations of Sections 5, 5and 17of
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