SEC v HEALTH MAINTENANCE CENTERS, INC., ZNETIX, INC., et al


\|

Keywords & Phrases

CaseNo: LR-17613, CourtName: CEOS MOTHER AND SISTER DEFY COURT ORDER IN $91 MILLION SECURITIES, Defendant: Health Maintenance Centers, Inc., Znetix, Inc., Cascade Pointe of Arizona, LLC, Cascade Pointe of Nevis, LLC, Kevin L. Lawrence, Donovan C. Claflin, Clifford G. Baird, Bainbridge Human Performance Centers, PLLC, Kimberly Alexander, Bonnie M. Couch, Stacy Gray, and Vicki L. Lawrence, Plaintiff: SEC, State: AZ Arizona, UniqueCaseRef: SEC>LR-17613, Securities, Alexander, Couch, Znetix, Contempt, Exchange Commission, Health Maintenance, Cascade Pointe, Llc, Lawrence, Bainbridge, Kimberly Alexander, Bonnie, Mother, Sister, Fraud Action, Cadillac Escalade, Dodge Ram, Washington, Automobiles, Court-appointed Receiver, Emergency Action, Controlling, Executives, Watercraft, Aircraft, Motion, Prior Order , ContentID: 120253051

Case Documents

2002-07-15

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 128882

1 pages
HTML

Total Documents: 1 document , 1 page. CAUTION. PLEASE NOTE THAT THIS IS A ONE PAGE CASE.

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

SECURITIES
ALEXANDER
COUCH
ZNETIX
CONTEMPT
DEFENDANTS
EXCHANGE COMMISSION
HEALTH MAINTENANCE
CASCADE POINTE
LLC
LAWRENCE
BAINBRIDGE
KIMBERLY ALEXANDER
BONNIE
MOTHER
SISTER
FRAUD ACTION
CADILLAC ESCALADE
DODGE RAM
WASHINGTON
AUTOMOBILES
COURT-APPOINTED RECEIVER
EMERGENCY ACTION
CONTROLLING
EXECUTIVES
WATERCRAFT
AIRCRAFT
MOTION
PRIOR ORDER

SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17613 / July 15, 2002

   SECURITIES AND EXCHANGE COMMISSION v. HEALTH MAINTENANCE CENTERS,
   INC., ZNETIX, INC., CASCADE POINTE OF ARIZONA, LLC, CASCADE POINTE OF
   NEVIS, LLC, KEVIN L. LAWRENCE, DONOVAN C. CLAFLIN, CLIFFORD G. BAIRD,
   BAINBRIDGE HUMAN PERFORMANCE CENTERS, PLLC, KIMBERLY ALEXANDER, BONNIE
   M. COUCH, STACY GRAY, and VICKI L. LAWRENCE, Civil Action No. C
   02-0153 P (W.D. Wash.)

   CEO'S MOTHER AND SISTER DEFY COURT ORDER IN $91 MILLION SECURITIES
   FRAUD ACTION; COURT HOLDS THEM IN CONTEMPT

   On July 9, 2002, the United States District Court in Seattle held in
   contempt two of the defendants in a $91 million securities fraud
   action brought by the Securities and Exchange Commission and ordered
   them to turn over a Cadillac Escalade and a $57,000 Dodge Ram Truck
   immediately or pay a $1,000 fine that would double each day. The next
   day, the two defendants -- Bonnie M. Couch, 60, of Bainbridge Island,
   Washington and Kimberly Alexander, 39, of Poulsbo, Washington, the
   mother and sister of Health Maintenance Centers, Inc. ("HMC") and
   Znetix Inc.'s CEO -- turned over the luxury automobiles to the
   court-appointed receiver.

   Previously, the SEC filed an emergency action on January 23, 2002,
   against Znetix, HMC, three related companies, their controlling
   executives, and several family members of the CEO, alleging that the
   executives falsely promised investors lucrative profits from the
   imminent initial public offering of Znetix. In connection with that
   emergency action, the Court ordered all defendants to turn over
   control of their automobiles, watercraft and aircraft to the
   court-appointed receiver.

   In April 2002, two of the defendants, Couch and Alexander, defied the
   Court's order and refused to turn over the Cadillac Escalade and Dodge
   Ram. As a result, the SEC on April 30, 2002 filed a motion to hold
   Couch and Alexander in contempt of court. At a hearing on July 9, the
   Court found that Couch and Alexander had failed to comply with the
   Court's prior order and held them in contempt.
     _________________________________________________________________

Modified 07/16/2002

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION v. HEALTH MAINTENANCE CENTERS,

INC., ZNETIX, INC., CASCADE POINTE OF ARIZONA, LLC, CASCADE POINTE OF NEVIS, LLC, KEVIN L.

M. COUCH, STACY GRAY, and VICKI L. LAWRENCE, Civil Action No. C 02-0153 P (W.D.

CEO'S MOTHER AND SISTER DEFY COURT ORDER IN $91 MILLION SECURITIES FRAUD ACTION;

On July 9, 2002, the United States District Court in Seattle held in contempt two of the

The next day, the two defendants -- Bonnie M. Couch, 60, of Bainbridge Island, Washington and

Previously, the SEC filed an emergency action on January 23, 2002, against Znetix, HMC, three

In connection with that emergency action, the Court ordered all defendants to turn over

As a result, the SEC on April 30, 2002 filed a motion to hold Couch and Alexander in contempt

At a hearing on July 9, the Court found that Couch and Alexander had failed to comply with


\|