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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
EXCHANGE COMMISSION SPRATT ACT CIVIL VIOLATING PARTICIPATING CORPORATE RELATIONS GROUP MIDDLE DISTRICT JUDGEMENT JAMES PERMANENTLY ENJOINS ANTIFRAUD ANTITOUTING REGISTRATION PROVISIONS SECURITIES LAWS OFFERING PENNY STOCK FLORIDA ADMITTING DENYING ENTRY CRG CRG ACQUIRED CONTROL STEEP DISCOUNT SOLD EXEMPT DEFENDANTS PROCEEDING |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 17571 / JUNE 17, 2002
JAMES W. SPRATT III PERMANENTLY ENJOINED FROM VIOLATING THE ANTIFRAUD,
ANTITOUTING AND REGISTRATION PROVISIONS OF THE FEDERAL SECURITIES LAWS
AND BARRED FROM PARTICIPATING IN AN OFFERING OF PENNY STOCK
Securities and Exchange Commission v. Corporate Relations Group, Inc.,
et al., Civil Action No. 6 99-cv-1222-Orl-28A (M.D. Fla., Orlando)
(filed September 27, 1999)
The Securities and Exchange Commission ("Commission") announced today
that, on December 31, 2001, the United States District Court for the
Middle District of Florida entered a final judgment against James W.
Spratt III ("Spratt"). Without admitting or denying the Commission's
allegations, Spratt consented to the entry of a judgment which
permanently enjoins him from violating Sections 5(a), 5(c), 17(a) and
17(b) of the Securities Act of 1933 ("Securities Act"), Sections 10(b)
and 15(a)(1) of the Securities Exchange Act of 1934 ("Exchange Act"),
and Exchange Act Rule 10b-5. The judgment also requires Spratt to pay
disgorgement and prejudgment interest in the amount of $629,000, and a
civil penalty of $125,000. In a related administrative action, without
admitting or denying the Commission's findings, Spratt consented to
the entry of a Commission order barring him from participating in any
offering of penny stock.
The Commission alleged that Spratt, while a principal associate of
Corporate Relations Group, Inc. ("CRG"), a public relations firm and
co-defendant in the civil injunctive action, violated the antifraud,
antitouting and registration provisions of the securities laws by
participating in a fraudulent scheme in which CRG acquired control of
large blocks of securities from small companies at a steep discount,
touted the securities to the public, and then sold the securities,
which were neither registered with the Commission nor exempt from
registration.
The Commission's civil action against CRG and other defendants is
proceeding in the Middle District of Florida. (September 27, 1999).
_________________________________________________________________
Modified 06/17/2002
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