U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20793 / October 28, 2008
Securities and Exchange Commission v. Steven B. Misner, (United States District Court for the District of Colorado, Civil Action No. 07-CV-1640-REB-MEH)
Steven B. Misner, Former CEO and Chairman of Southwestern Water Exploration Co., Enjoined; Court Also Imposes Officer and Director and Penny Stock Bars
The Commission today announced that on Oct. 27, 2008, the United States District Court for the District of Colorado entered a judgment against Steven B. Misner (Misner), the former CEO and Chairman of the now bankrupt Southwestern Water Exploration Company (SWWE). The judgment permanently enjoins Misner from violating the antifraud provisions of the federal securities laws (Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5), and permanently bars Misner from acting as an officer or director of a public company and from participating in the offering of any penny stock. The Court found Misner liable for disgorgement of $104,000 plus prejudgment interest of $43,053. 86, but waived payment of all except $10,000 based on Misner's sworn financial representations. Misner consented to the entry of the judgment without admitting or denying the allegations in the Complaint.
On July 19, 2006, the Commission commenced this action by filing its Complaint against Misner. The Complaint alleged that during 2001 and 2002, Misner made materially false and misleading statements about SWWE's alleged underground water rights in press releases, on the company's Internet website, and to an individual investor. The Complaint also alleged that Misner knew, or was reckless in not knowing, that SWWE had no rights to a Colorado aquifer, exaggerated the amount of water in the aquifer, and inflated the price at which the water could be sold by billions of dollars.
For further information, please see Litigation Release No. 19765 (July 20, 2006).