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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15048 / September 16, 1996
SECURITIES AND EXCHANGE COMMISSION v. ROYAL AMERICAN MANAGEMENT,
INC.,et al., CIV-94:1619-T, USDC, WD/OK
The Securities and Exchange Commission ("Commission")
announced that on July 31, 1996, a final judgment was entered in
United States District Court in Oklahoma City, Oklahoma, against
Anthony Escobar ("Escobar"). Without admitting or denying the
allegations in the Commission's complaint, Escobar consented to
be permanently enjoined from future violations of the securities
registration and anti-fraud provisions of the federal securities
laws based on his participation in the offering of the common
stock of Omnet Corporation ("Omnet"), a penny stock company.
According to the complaint, Escobar, and other defendants in this
case, engaged in the fraudulent activity in order to artificially
inflate the stock price of Omnet and personally benefit by
selling shares they controlled at inflated prices.
The Court also ordered Escobar to pay disgorgement in the
amount of $30,600, which represents the proceeds attributable to
him from the allegedly unlawful sales of securities, plus
prejudgment interest of $9,601.48. However, the payment of all
disgorgement and prejudgment interest was waived based on
Escobar's demonstrated financial inability to pay. Additionally,
the Court did not impose a civil penalty because of Escobar's
poor financial condition.
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ANTHONY ESCOBAR PERMANENT ENJOINED IN PENNY STOCK SCHEME PARKER
The Commission announced that on July 31, 1996, a final
judgment was entered in United States District Court in
Oklahoma City, Oklahoma, against Anthony Escobar (Escobar).
Without admitting or denying the allegations in the
Commission's complaint, Escobar consented to be permanently
enjoined from future violations of the securities
registration and anti-fraud provisions of the federal
securities laws based on his participation in the offering
of the common stock of Omnet Corporation, a penny stock
company. According to the complaint, Escobar, and other
defendants in this case, engaged in the fraudulent activity
in order to artificially inflate the stock price of Omnet
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission announced that on July 31, 1996, a final judgment was
Without admitting or denying the allegations in the Commission's complaint, Escobar consented
According to the complaint, Escobar, and other defendants in this case, engaged in the
The Court also ordered Escobar to pay disgorgement in the amount of $30,600, which represents
the payment of all disgorgement and prejudgment interest was waived based on Escobar's
the Court did not impose a civil penalty because of Escobar's poor financial condition.
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