SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release. No. 45140 / December 7, 2001
File No. 3-10648
PROCEEDINGS INSTITUTED AGAINST LEE E. GAHR
The Commission announced that it has instituted administrative proceedings against Lee E. Gahr ("Gahr"), a resident of Vancouver, British Columbia, seeking a penny stock bar. In the Order Instituting Proceedings ("Order"), the Division of Enforcement ("Division") alleges, among other things, that a U.S. District Court entered a default injunction against Gahr. SEC v. Lee E. Gahr and Chill Tech Industries, Inc., No. CV-S-00-1088-KJD-RJJ (D. Nev. Aug. 22, 2001). The Division further alleges that the injunction was based on the Commission's allegations in the U.S. District Court matter that between September 1998 to May 2000, Gahr, the chief operating officer of Chill Tech Industries, Inc., made a variety of false and misleading statements about the company, including statements relating to its purported development of an environmentally-friendly, self-chilling beverage can. According to the complaint in the U.S. District Court matter, Gahr made these statements while promoting, offering and selling the common stock of the company, which was a penny stock. The proceedings were instituted under Sections 15(b)(6) of the Securities Exchange Act of 1934 ("Exchange Act").
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Gahr an opportunity to dispute these allegations, and to determine whether a penny stock bar is appropriate and in the public interest.