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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
ECO2 TIRE TIRE RECOVERY RECOVERY SYSTEMS SECURITIES EXCHANGE COMMISSION CIVIL CHARLES MISLEADING PRESS CIVIL ACTION PERMANENT INJUNCTION CIVIL MONETARY PENALTIES PRESIDENT COMPLAINT FLORIDA CHIEF OFFICER SALES SCRAP BY-PRODUCTS LIMITED INCOME SCRAP RUBBER TIPPING FEES COMMISSION ALLEGES NEGOTIATIONS PURCHASE FUTURE REVENUES ECO JET SYSTEMS |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 16067 / February 23, 1999
SECURITIES AND EXCHANGE COMMISSION v. CHARLES D. LEDFORD
Civil Action No. 99-CV-27SPM
SEC FILES CIVIL ACTION FOR PERMANENT INJUNCTIVE RELIEF AND
CIVIL MONETARY PENALTIES AGAINST CHARLES D. LEDFORD, FORMER
PRESIDENT OF ECO2, INC.
On February 12, 1999, the Securities and Exchange
Commission ("Commission") filed a complaint in the Northern
District of Florida against Charles D. Ledford ("Ledford"),
the former president, Chief Executive Officer and Chief
Financial Officer of ECO2, Inc. ("ECO2"), seeking a
permanent injunction and civil monetary penalties against
Ledford for his repeated violations of Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
According to the complaint, Ledford issued a series of
false and misleading press releases designed artificially to
inflate the price of ECO2’s publicly traded stock and
attract new investors to ECO2. ECO2, a Delaware company
formerly headquartered in Hawthorne, Florida, was a
development stage company established to provide solid waste
tire management services to governmental, commercial and
industrial entities through sales of a "tire recovery
system." The tire recovery system purportedly utilized a
pyrolysis process to recycle scrap tires into oil, carbon
black, steel and methane gas by-products. Ledford, through
the company, purportedly intended to build and sell the tire
recovery systems and to market the by-products of the
recovery process. In fact, no tire recovery systems were
ever sold by ECO2, which realized only limited income from
the sale of scrap rubber and tipping fees.
The Commission alleges that from at least March 1995
through early 1997, Ledford caused the company to issue
false and misleading press releases to the public regarding
negotiations between ECO2 and various entities for the
purchase of ECO2’s tire recovery systems, and at least one
press release regarding present and future revenues of an
ECO2 subsidiary, ECO Jet Systems, Inc.
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