==========================================START OF PAGE 1======
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 14814 / February 9, 1996
SECURITIES AND EXCHANGE COMMISSION v. SCORPION TECHNOLOGIES,
INC., TERRY G. MARSH, RICHARD BAUER, ERIC C. BROWN, DUDLEY MIHRAN
FREELAND, J. GORDON NEVERS, AND ALBERT TERRANOVA, 96 Civ. 1005
(LMM) (S.D.N.Y.)
The Securities and Exchange Commission announced the filing
of a Complaint in the United States District Court for the
Southern District of New York alleging a massive financial fraud
involving bank accounts and companies located in 20 countries
around the world. The Commission charged that the defendants
unlawfully distributed millions of shares of stock in Scorpion
Technologies, Inc. ("Scorpion") to the public, while certain
defendants inflated Scorpion's stock price by releasing
fraudulent financial results, based upon reported revenues that
were as much as 80% fictitious. Named as defendants were:
SCORPION, a corporation located in Los Gatos, California,
that was purportedly engaged in the image processing
technology and personal computer businesses;
TERRY G. MARSH ("Marsh"), president, chief executive
officer, and a director of Scorpion until late 1993;
RICHARD BAUER ("Bauer"), a director of Scorpion, who
succeeded Marsh as president and chief executive officer;
ERIC C. BROWN ("Brown"), a certified public accountant and
former controller of Scorpion; and
DUDLEY MIHRAN FREELAND ("Freeland"), J. GORDON NEVERS
("Nevers"), and ALBERT TERRANOVA ("Terranova"), who
controlled broker-dealer firms that distributed Scorpion
stock to the public.
The Commission's Complaint alleges as follows:
By means of numerous sham transactions and circuitous
movements of funds, Marsh, Bauer, and Brown painted an entirely
false picture of Scorpion's business operations and financial
performance. At the same time that the defendants flooded the
market with false financial information, Marsh and Bauer
engineered unlawful offerings of more than 22 million shares of
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. SCORPION TECHNOLOGIES,
The Securities and Exchange Commission announced the filing of a Complaint in the United
The Commission charged that the defendants unlawfully distributed millions of shares of stock
SCORPION, a corporation located in Los Gatos, California, that was purportedly engaged in the
TERRY G. MARSH, president, chief executive officer, and a director of Scorpion until late
RICHARD BAUER, a director of Scorpion, who succeeded Marsh as president and chief executive
ERIC C. BROWN, a certified public accountant and former controller of Scorpion;
DUDLEY MIHRAN FREELAND, J. GORDON NEVERS, and ALBERT TERRANOVA, who controlled broker-dealer
ù between February and October 1991, fraud in a registered offering of two million shares of
ù from 1992 through 1994, fraud in connection with the issuance "offshore" and resale in the
The Complaint seeks permanent injunctions against each of the defendants variously for
The Complaint also seeks an order requiring Marsh, Bauer, Brown, Freeland, Nevers, and
change Act, and against Brown pursuant to Section 21of the Exchange Act.
|
