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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
USELTON MOUNTAIN ENERGY COMMISSION EXCHANGE COMMISSION JACK SETTLES SECURITIES EXCHANGE ACT MARC TOW GEORGE GUTTMAN JOSEPH CIVIL DISTRICT TEXAS ALLEGATIONS COMPLAINT STOCK FRAUDULENT PRESS OWNERSHIP NATURE ASSETS PRICE SIGNIFICANT HARM INVESTORS MARKET DEFENDANTS PENDING MATTER |
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 17787 / October 16, 2002
Securities and Exchange Commission v. Donald John Christensen, II,
Jack E. Uselton, Marc R. Tow, George W. Guttman, Joseph M. Blumenthal,
and Mountain Energy, Inc., Civil Action No. HO1-3203 (S.D.Tex.)
Jack E. Uselton Settles SEC Fraud Charges in Mountain Energy Case
On October 10, 2002, the U.S. District Court for the Southern District
of Texas entered a final judgment against Jack E. Uselton, the former
CEO of Mountain Energy, Inc., in a case filed by the Securities and
Exchange Commission in September 2001. Without admitting or denying
the allegations in the Commission's complaint, Uselton agreed to be
permanently restrained and enjoined from violating the anti-fraud
provisions of the federal securities laws (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). Uselton also agreed to be
barred from serving as an officer or director of any public company.
In settlement of its claims against Uselton, the Commission did not
seek a civil penalty based on Uselton's submission of sworn financial
statements to the Commission.
According to the allegations in the Commission's complaint, Uselton
participated in an illegal "pump-and-dump" scheme in the securities of
Mountain Energy, Inc., a start-up energy company headquartered in
Houston, Texas. During the spring and summer of 1998, Uselton and
others published six fraudulent press releases that misrepresented the
ownership, nature and value of Mountain Energy's assets. These press
releases caused a dramatic increase in the price of Mountain Energy
stock and significant harm to investors when the market for the stock
collapsed.
Two other defendants in the case, Joseph Blumenthal and George
Guttman, previously settled with the Commission. The case remains
pending against Mountain Energy, Donald John Christensen and Marc R.
Tow.
For further information about this matter, see (September 20, 2002)
and Securities Exchange Act Release No. 40273 (July 29, 1998).
_________________________________________________________________
Modified 10/16/2002
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