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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 14683 / October 6, 1995
SECURITIES AND EXCHANGE COMMISSION V. ENVIROMINT HOLDINGS, INC.,
CHARLES CHRISTOPHER, KATHRYN A. PREVITE, FRANK P. ZITKEVITZ,
DOMENICK M. SCHINA, IDATA, INC., AND ROBERT BOGUTSKI,
3:95-CV-2192-H, USDC, ND/TX (Dallas Division)
The Securities and Exchange Commission ("Commission") announced
that on September 29, 1995, it filed a Complaint for Civil
Injunction and Other Equitable Relief ("Complaint") in the United
States District Court for the Northern District of Texas against
EnvirOmint Holdings, Inc. ("EHI"), Charles Christopher
("Christopher"), Kathryn A. Previte ("Previte"), Frank P.
Zitkevitz ("Zitkevitz"), Domenick M. Schina ("Schina"), Idata,
Inc. ("Idata"), and Robert Bogutski ("Bogutski"). The Complaint
alleges violations of the antifraud and registration provisions
of the federal securities laws in the course of a scheme to
promote, distribute, and manipulate the market for, securities of
EHI, a "penny stock" company.
The Complaint alleges, among other things, that Christopher,
while in control of EHI, and with the participation of certain
other defendants, misappropriated shares of EHI common stock and
sold these shares into the market. As set forth in the
Complaint, Idata, EHI's transfer agent, acting on the
instructions of Christopher, destroyed records relating to
ownership of these shares and transferred the shares to a shell
corporation controlled by Christopher. The Complaint further
alleges that Christopher, with the participation of certain other
defendants, improperly used Regulation S and Form S-8
registrations to make public distributions of EHI stock in the
United States. In addition, the Complaint alleges that
Christopher and certain other defendants disseminated false and
misleading information into the market through press releases,
promotional materials and Commission filings. As set forth in
the Complaint, Christopher paid undisclosed cash and free-trading
EHI stock to registered representatives of broker-dealers,
including Zitkevitz and Schina, as inducements to recommended EHI
common stock to their clients. Finally, the Complaint alleges
that Christopher, Previte and Zitkevitz manipulated the price of
EHI stock by engaging in wash sales and matched orders.
The Commission's Complaint seeks permanent injunctions against
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The Securities and Exchange Commission announced that on September 29, 1995, it filed a
The Complaint alleges violations of the antifraud and registration provisions of the federal
The Complaint alleges, among other things, that Christopher, while in control of EHI, and
The Complaint also seeks disgorgement of profits from Christopher, Previte, Schina and
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