U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19948 / December 18, 2006
SEC v. Concorde America, Inc., et al., Civil Action No. 05-80128-CIV-ZLOCH (S.D. Fla.).
Final Judgment of Permanent Injunction Entered Against Defendants Bryan Kos and Donald E. Oehmke
The Securities and Exchange Commission announced that on November 28, 2006, Chief Judge William J. Zloch, United States District Judge for the Southern District of Florida, entered a Final Judgment of Permanent Injunction and Other Relief against Defendants Bryan Kos and Donald Oehmke. The Final Judgment entered with the consent of Kos and Oehmke, enjoins them from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Additionally, the Final Judgment permanently enjoins Kos and Oehmke from participating in an offering of penny stock and from participating in an unregistered offering of securities while acting as, or on behalf of, or in association with an issuer, underwriter, broker or dealer of securities. The Final Judgment orders Kos to pay disgorgement in the amount of $499,573.00, prejudgment interest of $29,573.00 and a civil penalty of $120,000 and orders Oehmke to pay disgorgement in the amount of $1,095,177.00, prejudgment interest of $109,307.00 and a civil penalty of $250,000.00.
The Commission commenced this action by filing its complaint on February 14, 2005, against Kos and Oehmke, among others. The complaint alleged that Kos and Oehmke defrauded investors by artificially creating demand for stock they owned in Concorde America and Absolute Health through unauthorized and false press releases, facsimile and e-mail spams, internet websites, promotional videos, and automatic voice-mail messages since approximately 2004.
For additional information, see Litigation Release No. 19085 (February 16, 2005).