UNITED STATES DISTRICT COURT
Plaintiff Securities and Exchange Commission (the "Commission") for its complaint against defendant Dean S. Thomassen ("Thomassen") alleges:
NATURE OF THE ACTION
1. For almost two years, from August 1998 to May 2000, Dean S. Thomassen made repeated fraudulent misrepresentations on the Internet for the purpose of manipulating the stock price of at least nine microcap companies. Thomassen sent numerous fraudulent unsolicited "spam" e-mail messages touting the stock and business prospects of each of the companies. Using several aliases, Thomassen also posted false and misleading information about these microcap companies on the Silicon Investor and Raging Bull websites. After the dissemination of the false information, many of the issuers' stock price and volume increased significantly in the short term. On three occasions, Thomassen quickly sold his personal stock holdings in these companies into the resulting inflated market. Through his trading in the issuers' stocks, Thomassen realized illegal profits of $8,302, which constituted a return on his original investment of between 32% and 132% depending upon the particular stock.
2. By knowingly or recklessly engaging in fraudulent conduct, Thomassen directly or indirectly violated the antifraud provisions of the federal securities laws, specifically, Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. § 78j(b)], and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
3. The Commission brings this action for an order permanently enjoining Thomassen from future violations pursuant to Section 20(b) of the Securities Act [15 U.S.C. §§77t(b)] and Section 21(d)(1) of the Exchange Act [15 U.S.C. §§78u(d)(1)]; an order barring the defendant from participating in the offering of any penny stock pursuant to Section 21(d)(6) of the Exchange Act [15 U.S.C. 78u(d)(6)] and Section 20(g) of the Securities Act [15 U.S.C. §§77t(g)] and an order of disgorgement of his illegal profits, plus prejudgment interest, and other relief. Unless enjoined, Thomassen will continue to engage in transactions, acts, practices and courses of business similar to those described herein. The Commission also brings this action for an award of civil penalties, pursuant to Section 20(d) of the Securities Act [15 U.S.C. §77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. §78u(d)(3)].
JURISDICTION AND VENUE
4. This Court has jurisdiction over this action pursuant to Section 22(a) of the Securities Act [15 U.S.C. §§ 77v(a)], and Section 27 of the Exchange Act [15 U.S.C. § 78aa]. Certain of the transactions, acts, practices, and courses of business alleged herein occurred within this District, and venue is proper pursuant to Section 22(a) of the Securities Act [15 U.S.C. §§ 77v(a)] and Section 27 of the Exchange Act [15 U.S.C. § 78aa].
5. Defendant, directly or indirectly, has made use of the means and instrumentalities of interstate commerce, or of the mails, in connection with the acts, practices, and courses of business alleged herein.
6. Defendant, Dean S. Thomassen, was at all relevant times a resident of Austin, Texas. Thomassen worked in Austin, Texas until he was transferred to Orange County, California in 2001.
7. During the relevant time period, Thomassen sent unsolicited e-mails and posted Internet messages touting stocks from his home and office computers in Austin, Texas. Thomassen was the sole author of the e-mails and Internet postings.
8. Since 1998, Thomassen has maintained brokerage accounts at Charles Schwab, Inc., Web Street Securities, Inc., FarSight Financial, L.P., and Ameritrade, all of which are solely in his name.
THE FRAUDULENT SCHEME
9. Starting in 1998, Thomassen began to purchase large blocks of stock in microcap companies in his FarSight and Web Street accounts. While holding the stock, Thomassen sent spam e-mails and, using multiple aliases, posted messages on the Silicon Investor and Raging Bull websites touting the stocks.
10. Many of Thomassen's stock touts contained materially false and misleading information about the companies, their business, and future prospects.
11. Oftentimes, Thomassen, under the guise of one alias, posted false information about a company's business prospects and hours later posted the same false information using a second alias, giving the reader the impression that more than one individual had heard the fabricated information about the company. In several instances, after the price of the touted stock increased, Thomassen sold his stock holdings into the inflated market.
Peacock Financial Corporation
12. On September 13, 1999, Thomassen purchased 15,000 shares of Peacock Financial Corporation ("PFCK") at $.225 per share. On September 16, 1999, he purchased another 10,000 shares, paying $.255 per share for the stock. In total, Thomassen invested $5,925 in PFCK. Shortly after his purchases, on September 24, 1999, using his alias, ProStockWatcher, Thomassen posted on the Raging Bull message board dedicated to PFCK a purported analyst report by "Sterling W. Remington" of the "major well-known analyst company" Remington and Associates. Thomassen failed to inform the readers that Sterling W. Remington is one of his many aliases and that Remington and Associates does not exist.
13. In his phony analyst report, Thomassen predicted that PFCK's stock price was expected to "significantly increase" on September 24, 1999 due to "several investment groups covering their short sell executions." Thomassen had no basis for this statement.
14. Thomassen continued touting PFCK on September 26, 1999. Using another one of his aliases, MarcusEBrock, Thomassen posted the following message on the Raging Bull website: "PFCK's imminent price rise this new week ahead along with the obvious diminishing float, will only add to PFCK's strength and upward momentum when coupled with a continued stream of blockbuster press releases!" Fifteen minutes later, Thomassen posted additional false claims on the same message board under his pseudonym, ProStockWatcher. In that post, he continued hyping PFCK by stating, "PFCK will be one HUGE ride up!!! My target is dollars and I am willing to hold as long as it takes . . . All it will take for the price to immediately get there is for one or two major big-time players buying up the remaining float (if there is a float left ... I'm not sure)."
15. From September 26 through September 27, Thomassen continued touting PFCK on the Raging Bull website. On September 26, under the pseudonym, MarcusEBrock, he speculated that a "DOOZIE press release will hit first thing in the morning!!!" He added, "I have watched stocks climb 12,500%. If PFCK ran 12,500%, it would go to $35.00 per share. Those people that sold that stock I mentioned when it first started running (at 50%, 100%, 400%, etc.) felt pretty darn nauseous when they repeated, `If I only waited . . . .'" He concluded his post by stating, "I AM NOT SELLING NO MATTER HOW HARD THE DIPS OR SHAKES TRY TO SCARE US... EVENTUALLY, THE BEST SURVIVE AND RISE UP, AND PFCK IS THE BEST!!!" On September 27, Thomassen predicted that PFCK "may close between .45 -.55," adding that, "the buying is just starting as the HUGE word is spreading!!!!"
16. Thomassen had no basis for these statements. Thomassen's statement about the company issuing a "blockbuster" press release on September 27 was false. Because there was no significant company news during this time frame, Thomassen's messages seeking to generate interest in, and demand for, PFCK were misleading and his statement that its stock price may close in the $.45 to $.55 range was false. During the time Thomassen was touting PFCK, its trading volume increased from 655,700 shares traded on September 24 (the last trading day before his fraudulent misrepresentations) to 1,584,200 shares traded on September 27.
17. On September 27, 1999, after PFCK's price had increased to a high of $.35 per share, Thomassen sold 25,000 shares of the stock, his entire position, at prices ranging from $.31 to $.33 per share, realizing a profit of $1,925.00, or 32%, on the trade. On September 28, PFCK's trading volume dropped to 664,600 shares traded, and the stock price closed at $.29.
Channel American Broadcasting, Inc.
18. In October 1999, Thomassen engaged in a similar pump and dump scheme with respect to the shares of Channel American Broadcasting, Inc. ("CATV"). On October 6, 1999, in ten separate transactions, Thomassen purchased a total of 799,000 shares of CATV in his Web Street account, with prices ranging from $.004 to $.006 per share. The total cost of Thomassen's investment in CATV was $3,828.50. On October 5, the day before Thomassen's purchases, CATV was trading at $.004 per share, with a trading volume of 72,000. On the day of Thomassen's purchases, CATV's trading volume increased to 6,296,100 shares traded.
19. At 3:10 a.m., on October 7, 1999, using his alias, ProStockWatcher, Thomassen posted the following message on the Raging Bull website: "CATVE IS GETTING BOUGHT OUT AND THIS LITTLE SHELL IS GOING TO BE PRICED SKY FREAKING HIGH THIS MORNING!!!! I CANNOT GO TO SLEEP BECAUSE I AM ANTICIPATING THE BIGGEST STOCK RUN I HAVE EVER SEEN." The same day, CATV's trading volume soared to 12,216,300 shares traded, and the price of CATV's shares reached a high of $.011 per share. Thomassen's statement was false because there was no news that CATV was to be acquired during this time.
20. Thomassen concluded his October 7 post by stating, "WE ARE BUYING AS MANY CATVE SHARES AS THE MARKET MAKERS WILL SELL US!!!" Later that day, rather than buying as many shares of CATV as he could purchase in the market (as he indicated in his post), Thomassen sold his entire holding of CATV shares in seven separate transactions, with prices ranging from $.004 to $.0095 per share. In less than one day, the value of Thomassen's initial investment of $3,828.50 had increased to $5,070. Thomassen made a profit of $1,241.50, or 32%, on the trade. The day after Thomassen sold his CATV stock, its trading volume dropped to 1,630,900 shares traded, and the stock price closed at $.01. On October 12, 1999, CATV's trading volume dipped well below pre-tout levels to 5,100 shares traded, and the stock price fell to $.002.
Murray United Development Corporation
21. On September 29, 1999, Thomassen purchased 250,000 shares of Murrray United Development Corporation's ("MRAY") stock at $.013 per share in five separate transactions. On September 30, 1999, Thomassen purchased an additional 50,000 shares of MRAY at $.013 per share. In total, Thomassen invested $3,900 in MRAY's stock. On the day before Thomassen's initial purchase of MRAY's stock, its trading volume was 60,000 shares traded. On September 29, MRAY's trading volume increased to 525,000 shares traded and it reached 1,700,000 shares traded on September 30.
22. At 4:30 a.m. on October 1, 1999, Thomassen began posting messages on the message board dedicated to MRAY on the Raging Bull website. In the first post, under another of his aliases, Stephen C. Thornton, Thomassen stated that "some members of our investment and research group have confirmed that MRAY (for the last 3½ months) were instructed not to mention [to the public] any government and other significant contract deals." This statement was false and misleading because Thomassen had no investment and research group.
23. In his posting, Thomassen further stated that "apparently, MRAY has been in long-term planning for several major government contracts where MRAY has exclusivity on specific technologies . . ." On the same day, at 1:22 p.m., using his alias ProStockWatcher, Thomassen posted another message on the same message board discussing MRAY's purported government contracts, thereby giving the reader the impression that more than one poster had heard information about the anticipated contracts. In that message, he stated, "WE ARE HEARING ABOUT THE MAJOR GOVERNMENT CONTRACTS NOW COMING TO FRUITION." On October 1, MRAY's trading volume increased to 4,128,100 shares traded.
24. Thomassen's statements in these two posts were false and misleading because there was no company news of any nature during this time period. Thomassen concluded the second posting by stating, "WE ARE BUYING AND FULLY KNOW ALL THE RISKS INVOLVED." Contrary to this statement, Thomassen sold all of his MRAY stock that afternoon (October 1) in eight separate transactions, at prices ranging from $.015 to $.031 per share. In two days, the value of Thomassen's investment in MRAY's stock increased from $3,900 to $9,035. Thomassen profited $5,135, or 132%, on the transaction. On October 4, the next trading day after Thomassen's sales of MRAY, MRAY's trading volume dipped to 507,000 shares traded, with the stock price closing at $.015. On October 7, MRAY's trading volume fell below pre-tout levels to 20,000 shares traded, and the stock price closed at $.015.
Other False and Misleading Statements
25. During the same time period, Thomassen engaged in similar conduct with respect to the shares of six other companies, Crown Laboratories, Inc., Appletree Companies, Inc., Kading Companies, Inc., Sani-Tech Industries, Inc., National Institute Companies of America, Inc. and EXA International, Inc. With regard to four of the companies, Thomassen made fraudulent statements in an attempt to reap as much money as possible. Thomassen was predominantly unsuccessful, however, and instead lost money on one issuer's stock, held onto the majority of his shares in another, broke even on a third, and ultimately profited $50 on a fourth. Thomassen touted the stock of two other companies as part of his efforts to win a stock-picking contest on an Internet message board.
Crown Laboratories, Inc.
26. On July 8, 1999, using his aliases SterlingRPHD and Copper Master, Thomassen posted messages on Silicon Investor and Yahoo message boards and sent an e-mail to a list of investors touting Crown Laboratories, Inc. ("CLWB"). In his e-mail and posts, Thomassen falsely stated that McKesson HBOC was to acquire Crown Laboratories. To support his hype, Thomassen stated that Scott Jazinski of Jazinski & Associates also is "spreading the word." Thomassen further stated that Jazinski and Associates "cannot control themselves with their confidence in this `predicted' minimum 2000% profit-making excursion tomorrow!!!!!!!!!" Thomassen failed to inform his readers that Scott Jazinski and Jazinski & Associates do not exist. During the relevant time period, McKesson HBOC did not announce any intention of purchasing Crown Laboratories.
27. On July 7, the day before Thomassen's post, trading in CLWB closed at $.012 per share and the trading volume was 878,400 shares traded. On July 8, the day of Thomassen's post, CLWB reached a high of $.13 per share and the trading volume soared to 6,565,200 shares traded. By the next day, July 9, the stock had dropped to $.07 per share and the trading volume decreased to 1,817,800 shares traded. By July 12, the stock price had dropped to $.03 per share and the trading volume slipped to 192,000 shares traded. During this time period, Thomassen did not own any shares of CLWB. Thomassen touted this stock as part of his efforts to win a daily stock-picking contest organized by a poster on a Silicon Investor message board.
Appletree Companies, Inc.
28. On July 9, 1999, Thomassen sent an e-mail to a list of investors touting the stock of Appletree Companies, Inc. ("ATREQ"). In the email, he falsely stated that "confirmed information has again `leaked' regarding one of the fastest growing Internet Access and Web Development companies `Eagles Nest, Ltd.' . . . . is to immediately become a `public' company by assuming the ticker symbol of ATREQ."
29. In the e-mail, Thomassen also used his fictitious analyst, Jazinski & Associates, to support his touting of ATREQ: "The 1000% price increase in CLWB will be dwarfed by the price increase today on ATREQ!!!!!!!!!! Just like with my other picks, Jazinski & Associates, Inc. is categorizing ATREQ's predicted price increase today as being `record breaking.'" Later in the e-mail, under the heading "`Leaked'information of immediate buyout by Eagles Nest, Ltd," Thomassen stated, ". . .[Y]ou can definitely see where we are headed with this MAJOR upward bounce today." He concluded his e-mail by stating, "We are looking for .37 - .44 per share tomorrow. Getting to their $5.00 high may take this news spreading over the weekend and a press release. Good luck!" Thomassen's e-mail was false because there was no evidence that Eagles Nest, Ltd. was to buy ATREQ.
30. On July 8, the day before Thomassen's e-mail, trading in ATREQ closed at $.012 per share and the trading volume was 1,588,200 shares traded. On July 9, the day of Thomassen's e-mail, trading in ATREQ reached a high of $.32 per share and the trading volume increased to 17,804,300 shares traded. Thomassen did not own shares of ATREQ during this time period. Thomassen touted this stock as part of his efforts to win a daily stock-picking contest organized by a poster on a Silicon Investor message board.
Kading Companies, Inc.
31. On September 9, 1999, using his alias ProStockWatcher, Thomassen posted a false and misleading message on a message board dedicated to Kading Companies, Inc. ("KDNG") on the Raging Bull website. In his post, Thomassen falsely stated, "Major information is pointing to KDNG announcing internet co. acquisitions and announcing the major launch of breakthrough products." Thomassen's statement was false because there was no company news regarding an Internet acquisition or the launching of new products during this time period. The next day, on September 10, Thomassen continued hyping KDNG by posting another message on the same message board stating, "If anyone isn't 100% sold on KDNG, then they haven't called Pres. Kevin Kading yet." He further stated, "Some huge events are about to transpire. Gator, myself, or Kevin Kading cannot reveal any of this information as the SEC does not like any information `leaking' about future press releases." Thomassen's post was false because he did not possess any information to be contained in a future KDNG press release.
32. On September 8, the day before his post, Thomassen purchased 100 shares of KDNG at $.75 per share, bringing his total holding in KDNG to 4,500 shares. That day, KDNG closed at $.75 per share and the trading volume was 800 shares traded. On September 9, the day of Thomassen's first post, there was no trading in KDNG. On
Friday, September 10, the day of Thomassen's second post, the stock price of KDNG closed at $.75 and the trading volume was 500 shares traded. By Monday, September 13, the price of KDNG's stock had dropped to $.53125 per share, but the trading volume increased to 12,000 shares traded. Thomassen was unsuccessful in his attempt to artificially increase the price of KDNG's shares and thereby profit from his fraudulent statements. On November 2, 1999, he sold all 4,500 shares at $.375 per share, which was a loss.
Sani-Tech Industries, Inc.
33. On November 5 and 6, 1998, Thomassen purchased 500,000 shares of Sani-Tech Industries, Inc. ("SNTS") at $.0017 per share. At 4:52 p.m. on November 5, Thomassen, using his alias Copper Master, posted the following false and misleading information on a message board dedicated to SNTS on the Silicon Investor website: "It takes just a small amount of money to own a big chunk of this stock and from what I hear, the company does have a mutual interest and common links with Proctor and Gamble (sic). My next door neighbor is the West Coast Exec. VP of Sales. If anyone knows about this being legitimate, he would. He said PG merges with many small companies and grows them into super power companies or PG places their corporate logo right on the front door of these business (sic). The PG rep did say this, `If you own any of these shares, you will be a sure millionaire shortly.'" This message was false because Sani-Tech Industries did not have any "common links" with Procter & Gamble. Thomassen posted the message to mislead investors into believing that a merger between Sani-Tech Industries and Procter & Gamble was imminent.
34. On November 5, the day of Thomassen's post, trading in the shares of SNTS closed at $.00169 per share and the trading volume was 1,825,000 shares traded. The next day, Friday, November 6, SNTS reached a high of $.00169 per share and trading closed at $.001 per share with the trading volume dropping to 1,000,000 shares traded. By Monday, November 9, the stock closed at $.00187 and the trading volume dropped to 665,000 shares traded. On November 18, Thomassen sold 200,000 shares of SNTS at $.0015 per share and sold the remaining 300,000 shares on November 23 at the price of $.002 per share. By these transactions, Thomassen realized a profit of $50.00.
National Institute Companies of America, Inc.
35. In April 2000, Thomassen held 21,800 shares of National Institute Companies of America, Inc. ("NICM") in his Web Street Securities brokerage account. From May 3 to May 10, Thomassen bought an additional 24,300 shares at prices ranging from $.235 to $.30 per share, bringing his total holding in NICM to 46,100 shares. On May 19, 2000, using his alias ProStockWatcher, Thomassen posted the following message on the message board dedicated to NICM on the Raging Bull website: "Receiving mega emails of new major deals for National Institute Companies of America -- I think our time has come boys and girls - buckle up for hyperspace." Thomassen's statement was false because there was no news of any "major new deals" for NICM during this time period. On May 18, the day before Thomassen's post, NICM reached a high of $.28 per share and closed at $.21 per share with a trading volume of 776,500 shares traded. On the day of Thomassen's post, May 19, the stock reached a high of $.25 per share and closed at $.21 per share with a trading volume of 645,200 shares traded. By Monday, the trading volume slipped to 466,800 shares traded and trading in the stock closed at $.20 per share. Failing in his attempt to increase investor interest in NICM, Thomassen held onto his shares of NICM, selling only 100 shares on May 25 at a price of $.16 per share.
EXA International, Inc.
36. On September 21, 1999, Thomassen bought 20,000 shares of EXA International, Inc. ("ETVL") at a price of $.15 per share. On October 1, using his alias ProStockWatcher, Thomassen posted the following message on the message board dedicated to ETVL on the Raging Bull website: "Oh, I just heard from Stan Priskie [president of the company]. He said that designers are fine-tuning the links required to access airline ticketing, cruise lines, tour companies, hotels, and car rental companies." Thomassen added, "I have been continuously buying ETVL at .15 and .17 for the last 4 weeks. 17 cents will be a "joke" once the web-site is launched and even sooner with great news that can trigger buying and result in the beginning of the imminent `short squeeze.'"
37. Two days later, on October 3, Thomassen posted another message discussing his purported contacts with Stanley Priskie, the President of EXA International. In his post, Thomassen stated, "Mr. Priskie originally told me mid-October for the major web-site launch and now `all is going so smoothly' in development, it looks like just a few more days!!!! With the float this tiny, ETVL will definitely go into a negative float situation . . . . and with the heavy buying that should start when the world witnesses the web-site, the backwards supply/demand scenario will (sic) be in should rocket ETVL's price way over $1.50 - $1.85 per share." Thomassen continued promoting ETVL on October 15 by posting a message stating, "I sent an e-mail to Mr. Stanley Priskie asking whether the web-site would be launched on Oct. 15. We will probably see the site launched within a day or two of the 15 th , but maybe they will shock the world and tomorrow ETVL will pass $1.00 per share."
38. Thomassen's statements were false and misleading because there was no company news during this time period that would cause the stock price to rise past $1.00. The statements also were misleading in that they were calculated to cause investors to believe that the president of EVTL, Stanley Priskie, had passed confidential information about the company's business prospects to Thomassen, which was untrue. On October 15, Thomassen, unsuccessful in his attempt to increase the price of EVTL's shares, sold all 20,000 of his shares at a price of $.15 per share, breaking even on the trade.
Thomassen Acted With Scienter
39. Thomassen posted numerous false and misleading messages about nine companies for almost two years. During his fraudulent scheme, he disguised himself as a professional stock analyst and took additional steps to conceal his true identity, including the use of multiple aliases on several Internet message boards. The nature and duration of his conduct demonstrates that it was not the product of innocent mistake or inadvertence. Rather, Thomassen intentionally or recklessly posted false and misleading information about the touted companies and made extreme and unjustified stock price predictions.
40. Thomassen's scienter is also established by his continued recommendation of some of the touted stocks to his readers while knowing that he intended to sell his shares in these companies within hours. In some instances, Thomassen went so far as to falsely tell the readers he intended to hold the stock, only to sell his entire position within hours of the false posting. At no time did Thomassen retract any of his messages or inform readers of the true facts.
FIRST CLAIM FOR RELIEF
41. Plaintiff repeats and realleges Paragraphs 1 through 40 above.
42. By reason of the foregoing, Defendant Thomassen, directly and indirectly, intentionally, knowingly or recklessly, in the offer or sale of securities by the use of the means or instruments of transportation or communication in interstate commerce or by the use of the mails: (a) employed, or is employing devices, schemes, or artifices to defraud; (b) has obtained, or is obtaining money or property by means of untrue statements of material fact or omissions to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; and (c) has engaged, or is engaging in transactions, acts, practices, or courses of business which operate, are operating or are about to operate as a fraud upon purchasers of securities as set forth above, in violation of Section 17(a) of the Securities Act [15 U.S.C. §77q(a)].
SECOND CLAIM FOR RELIEF
43. Plaintiff repeats and realleges paragraphs 1 through 40 above.
44. By reason of the foregoing, Defendant Thomassen, directly or indirectly, intentionally, knowingly or recklessly, by the use of means or instrumentalities of interstate commerce or of the mails: (a) has employed, or is employing devices, schemes, or artifices to defraud; (b) has made, or is making untrue statements of material facts or have omitted, or is omitting to state material facts necessary to make the statements made, in the light of the circumstances under which they were made, not misleading; and (c) has engaged, or is engaging, in acts, practices, or courses of business which have operated, or are operating as a fraud or deceit upon persons, in connection with the purchase or sale of securities as set forth above, in violation of Section 10(b) of the Exchange Act [15 U.S.C. §78j(b)] and Rule 10b-5 [17 C.F.R. §240.10b-5] thereunder.
PRAYER FOR RELIEF
WHEREFORE, the Commission respectfully requests that this Court enter a final judgment:
Permanently enjoining defendant Thomassen from violating, directly or indirectly, Section 10(b) of the Exchange Act [15 U.S.C. §78j(b)], and Rule 10b-5 thereunder [17 C.F.R. §240.10b-5];
Permanently enjoining defendant Thomassen from violating, directly or indirectly, Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)];
Ordering defendant Thomassen to disgorge the ill-gotten gains that he received as a result of his wrongful conduct, and to pay prejudgment interest thereon;
Ordering defendant Thomassen to pay civil money penalties pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)];
Permanently barring defendant Thomassen from any future participation in the offering of any penny stock as defined by Section 20(g) of the Securities Act [15 U.S.C. §§77t(g)] and Sections 3 (a)(51)(A), [15 U.S.C. § 78c (a) (51) (A)] and Section 21(d)(6) [15 U.S.C. § 78u(d)(6)] of the Exchange Act;
Granting such other relief as this Court may deem just and proper; and
Retaining jurisdiction of this action in accordance with the principles of equity and the Federal Rules of Civil Procedure in order to implement and carry out the terms of all orders and decrees that may be entered or to entertain any suitable application or motion for additional relief within the jurisdiction of this Court.
Dated: May 13, 2003
Jeffrey B. Norris
* Motions for admission pro hac vice pending.