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SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15733 / May 7, 1998
SECURITIES AND EXCHANGE COMMISSION v. GOLDEN EAGLE INTERNATIONAL,
INC., RONALD A. KNITTLE, MARY A. ERICKSON, GREGORY G. VERNON,
TIMBERLINE CONSULTANTS, INC., AND PAUL B. VERNON, Civil Action No.
98-Z-1020 (D. Colo.)
The Securities and Exchange Commission today filed a micro-cap market
fraud case involving the securities of Golden Eagle International,
Inc., a mining company headquartered in the Denver, Colorado area.
Named as defendants are Golden Eagle, its president Ronald A. Knittle,
a director and wife of Knittle, Mary A. Erickson, Gregory Vernon and
his company Timberline Consultants, Inc., who acted as public
relations consultants to Golden Eagle, and Paul B. Vernon. All of the
Defendants reside in the Denver, Colorado area.
Specifically, the complaint alleges that Golden Eagle, Knittle,
Erickson, Gregory Vernon, and Timberline Consultants engaged in a
scheme to falsely tout the stock of Golden Eagle from late 1994
through mid-1996 in a series of public statements making unfounded
claims concerning Golden Eagle's mining business. As a result of the
scheme, Golden Eagle stock traded at prices as high as $6.25 per share
in the over-the-counter markets. At the same time, Golden Eagle
realized at least $662,000 from the sale of its stock into the
markets.
The complaint also alleges Golden Eagle made false filings with the
Commission, and was delinquent in its filings with the Commission, and
failed to keep required books and records. The complaint further
alleges that all defendants except Golden Eagle sold unregistered
Golden Eagle stock. It charges that defendant Paul Vernon acted as a
nominee of Knittle in connection with the sale of unregistered Golden
Eagle stock and along with Knittle, filed a false schedule 13D
concerning his ownership of Golden Eagle stock.
The Complaint seeks orders permanently enjoining Golden Eagle,
Knittle, Erickson, Timberline, Greg Vernon and Paul Vernon from
violations of Section 10(b) of the Securities Exchange Act of 1934
("Exchange Act") and Rule 10b-5; Golden Eagle, Knittle, Erickson, and
Paul Vernon from violations of Section 17(a) of the Securities Act of
1933 ("Securities Act"); Timberline and Greg Vernon from violations of
Section 17(b) of the Securities Act; Knittle, Erickson, Timberline,
Greg Vernon, and Paul Vernon from violations of Sections 5(a) and 5(c)
of the Securities Act; Golden Eagle, Knittle, and Erickson from
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. GOLDEN EAGLE INTERNATIONAL,
TIMBERLINE CONSULTANTS, INC., AND PAUL B. VERNON, Civil Action No. 98-Z-1020 (D.
The Securities and Exchange Commission today filed a micro-cap market fraud case involving
Named as defendants are Golden Eagle, its president Ronald A. Knittle, a director and wife of
All of the Defendants reside in the Denver,
Specifically, the complaint alleges that Golden Eagle, Knittle, Erickson, Gregory Vernon, and
As a result of the scheme, Golden Eagle stock traded at prices as high as $6.25 per share in
The complaint also alleges Golden Eagle made false filings with the Commission, and was
It charges that defendant Paul Vernon acted as a nominee of Knittle in connection with the
The Complaint seeks orders permanently enjoining Golden Eagle, Knittle, Erickson, Timberline,
e Securities Act; Golden Eagle, Knittle, and Erickson from violations of Sections 13, 13, and 13of
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