U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20223 / August 3, 2007
SEC v. Michael J. Pietrzak, Maurice W. Furlong and Donald E. Jordan, Civil Action No. 03C 1507 (NDIL)
The Securities and Exchange Commission announced today that a federal jury found Michael J. Pietrzak and Maurice W. Furlong liable for securities fraud and other charges in their operation of Hexagon Consolidated Companies of America, Inc. ("HCCA"), a development stage mining company headquartered in Reno, Nevada. Pietrzak was HCCA's general counsel, CFO, and executive secretary, as well as a director. Furlong was HCCA's chairman, president and CEO. The complaint alleged that Pietrzak and Furlong engaged in protracted efforts to fraudulently increase the stock price and value of the company by, among other means, filing false and misleading registration statements and periodic and current reports, and by issuing false press releases and a letter to shareholders. During the same time, Pietrzak and Furlong sold a total of more than 197 million shares of HCCA stock and fraudulently received proceeds of $1.3 million and $3.4 million, respectively. The complaint also alleged that from 1996 through 2001 HCCA, through the efforts of Pietrzak and Furlong, reported to the public that is was an entity with substantial assets when, in fact, it was virtually worthless.
A hearing has been scheduled for September 24, 2007 to determine the appropriate relief against Pietrzak and Furlong which, as requested by the SEC, may include permanent injunctions, disgorgement of the stock proceeds with interest, civil penalties, officer and director bars and penny stock bars.
See also: L.R. 18016 / March 6, 2003