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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 49996 / July 9, 2004

ADMINISTRATIVE PROCEEDING
FILE NO. 3-11491


In the Matter of

LARRY A. STOCKETT

Respondent.


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ORDER MAKING FINDINGS AND IMPOSING REMEDIAL SANCTION BY DEFAULT

The Securities and Exchange Commission (Commission) instituted these proceedings with an Order Instituting Proceedings (OIP) on May 17, 2004, pursuant to Section 15(b) of the Securities Exchange Act of 1934 (Exchange Act). The OIP was served on Larry A. Stockett (Stockett) on June 17, 2004, and his answer was due on July 7, 2004, twenty days after the date of service. See 17 C.F.R. 201.220(b).

Stockett has not filed an answer and, thus, is in default. See 17 C.F.R. 201.155(a), .220(f). Pursuant to Rule 155(a) of the Commission's Rules of Practice, 17 C.F.R. 201.155(a), I find the following allegations in the OIP to be true:

Stockett, age 57, is a resident of Las Vegas, Nevada. Between 1996 and at least July 2002, he was sole officer and director of Hightec, Inc. (Hightec).

Hightec is a former Delaware corporation whose common stock was registered with the Commission pursuant to Section 12(g) of the Exchange Act between July 1996 and July 19, 2002. Hightec did not filed any periodic reports with the Commission since filing its Form 10-QSB for the quarter ended September 30, 1996. On July 19, 2002, the registration of Hightec's common stock was revoked by default order. Hightec, Inc., 78 SEC Docket 218 (July 19, 2002).

On April 26, 2002, the Commission filed a complaint in SEC v. Stockett, Civil No. CV-S-02-0607-PMP-LRL (D. Nev.). In its complaint, the Commission alleged, among other things, that from at least July 1999 through April 2002, Stockett prepared and disseminated numerous materially false statements about Hightec in press releases, an Internet Website, Internet message boards, television infomercials, and in offering brochures sent directly to prospective investors. According to the complaint, these false statements concerned, among other things, the assets, legal status, business operations, financial condition, and income prospects of Hightec, as well as Stockett's disciplinary history. The complaint also alleged that Stockett sold thousands of shares of restricted Hightec stock in unregistered transactions while disseminating the false statements. According to the complaint, Stockett also failed to file mandatory periodic and current reports with the Commission on behalf of Hightec since late 1996.

On March 4, 2004, the United States District Court for the District of Nevada entered a final judgment permanently enjoining Stockett from violations of Sections 5(a) and 5(c) of the Securities Act of 1933, and Sections 10(b), 13(a), 13(d), and 16(a) of the Exchange Act and Rules 10b-5, 12b-25, 13a-1, 13a-11, 13a-13, 13d-1, 13d-2, 16a-2, and 16a-3 thereunder.

From at least July 1999 through April 2002, Hightec common stock was a penny stock. During the same period, Stockett participated in an offering of Hightec stock and therefore participated in an offering of penny stock.

In light of the foregoing, I find that it is appropriate in the public interest to bar Stockett from participating in an offering of penny stock.

IT IS ORDERED that, pursuant to Section 15(b) of the Securities Exchange Act of 1934, Larry A. Stockett is hereby BARRED from participating in an offering of penny stock.

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Robert G. Mahony
Administrative Law Judge

 

http://www.sec.gov/litigation/admin/34-49996.htm


Modified: 07/09/2004