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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
VIOLATIONS HALIMI SECURITIES COMPLAINT EXCHANGE REPORTING VIOLATIONS EXCHANGE COMMISSION ALLEGES EXCHANGE ACT CONTAINED FALSE LITIGATION CIVIL SETTLEMENT FRAUD CALIFORNIA PROVISIONS THEREUNDER MISLEADING STATEMENTS MARKET LIFTING PRICE ADMITTING DENYING ALLEGATIONS ENTRY JUDGMENT PERMANENTLY ENJOINING COMMITTING PAY CIVIL PENALTY |
U.S. Securities and Exchange Commission
Litigation Release No. 17339 / January 24, 2002
, Civil Action No. CV 02-00673 WJR (Ex)(C.D. Cal.).
The Securities and Exchange Commission announced today that it has
filed and settled a complaint alleging securities fraud and reporting
violations against Turbodyne Technologies, Inc. ("Turbodyne") (OTC
TRBD) and its founder and former Chairman, Edward M. Halimi, age 57 of
Santa Barbara, California. Turbodyne is an automotive parts company
located in Carpinteria, California. The Commission's complaint, filed
in federal court in Los Angeles, alleges that Turbodyne and Halimi
violated the antifraud provisions of Section 17(a) of the Securities
Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934
and Rule 10b-5 thereunder. The complaint further alleges that
Turbodyne violated the reporting provisions of Section 13(a) of the
Exchange Act, and Rules 12b-20 and 13a-1 thereunder, and that Halimi
aided and abetted Turbodyne's reporting violations.
The complaint charges Turbodyne and Halimi with fraud and reporting
violations in connection with several press releases issued by the
company between 1997 and 1999 that contained false and misleading
statements about purported business agreements Turbodyne had allegedly
entered into with several companies. These press releases contained
false and misleading statements regarding, among other things, the
company's potential revenues, the state of the company's distribution
arrangements, and the purported settlement of significant litigation
involving the company. Turbodyne also filed a Form S-1 and 10-K with
the Commission which repeated some of the misstatements contained in
the press releases. These press releases and false public filings had
a significant effect on the market, lifting the price of Turbodyne
from a little over $2 per share in March 1998 to $17 per share by
August 1998.
Without admitting or denying the allegations in the complaint,
Turbodyne and Halimi consented to the entry of a final judgment
permanently enjoining them from committing the violations outlined
above. Additionally, Halimi agreed to pay a $50,000 civil penalty.
_________________________________________________________________
Modified 01/25/2002
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