U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19727 / June 13, 2006
Securities and Exchange Commission v. Carl R. Rose, et al., Civil Action No. H-04-CV-2799
The Commission announced that on May 30, 2006, the United States District Court for the Southern District of Texas entered a Final Judgment against Defendant Hector J. Garcia, based on his consent.
In its complaint, the Commission alleged that Garcia, along with twelve other individuals, carried out a manipulation of two stocks, EpicEdge, Inc., and EVTC, Inc. Garcia was charged with violating the antifraud provisions of the federal securities laws; the stock ownership reporting provisions, the securities registration provisions and broker-dealer registration requirements. The complaint also charged Garcia with making, aiding and abetting material false and misleading statements and selling restricted stock.
Garcia, without admitting or denying the allegations of the complaint, consented to an order of permanent injunction which permanently restrained and enjoined him from violating, directly or indirectly, Sections 10(b) (and Rule 10b-5 thereunder), 13(d)(1) (and Rules 13d-1 and 13d-2 thereunder), 15(a)(1) and 16(a) (and Rule 16a-3 thereunder) of the Exchange Act; Sections 5 and 17(a) of the Securities Act and Rule 102 of Regulation M under the Exchange Act. Based on the consent, the Court also ordered Garcia to pay disgorgement in the amount of $290,292.73 which was waived based on Garcia’s financial condition.