U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21475 / April 2, 2010

Securities and Exchange Commission v. Ramy Y. El-Batrawi, GenesisIntermedia, Inc., Ultimate Holdings, Ltd., Adnan M. Khashoggi, Richard J. Evangelista, Wayne Breedon, and Douglas E. Jacobson, Civil Action No. CV-06-2247 (MRP) (C.D. Ca.)

The Commission announced that on April 1, 2010, the U.S. District Court for the Central District of California entered final judgments, by consent, against GenesisIntermedia, Inc., its former CEO and CFO, and related parties in a SEC enforcement action, filed in April 2006, charging them in connection with a scheme to manipulate GenesisIntermedia's stock from 1999 to 2001.

The final judgment against Ramy El-Batrawi permanently enjoins him from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13b2-1, and 13b2-2 thereunder, and from aiding and abetting violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13. The final judgment also bars El-Batrawi from acting as an officer or director of a public company for a period of five years. The final judgment against GenesisIntermedia permanently enjoins it from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a), and 13(b)(2)(A) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, and 13a-13. The final judgment against Adnan Khashoggi permanently enjoins him from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and bars him from acting as an officer or director of a public company for a period of five years.

The final judgment against Douglas Jacobson permanently enjoins him from violating Section 17(a)(3) of the Securities Act and Section 13(a)(5) of the Exchange Act and from aiding and abetting violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13, and orders him to pay a civil penalty of $6,500. The final judgment against Richard Evangelista permanently enjoins him from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5, and orders him to pay disgorgement in the amount of $25,000 and a civil penalty in the amount of $15,000. The final judgment against Wayne Breedon permanently enjoins him from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5. It also waives payment of disgorgement and prejudgment interest based on his sworn financial statement. The Commission dismissed its claims against Ultimate Holdings, which no longer exists.

These final judgments and the dismissal of Ultimate Holdings conclude this litigation.

In related administrative proceedings, GenesisIntermedia has consented to an Order pursuant to Section 12(j) of the Exchange Act to revoke the registration of its common stock. Also, on April 2, 2010, the Commission instituted settled administrative proceedings against Richard J. Evangelista pursuant to Section 15(b)(6) of the Exchange Act barring him from association with any broker-dealer based on the entry of the injunction against him in the SEC's civil action described above. Exch. Act Rel. No. 34-61832 (April 2, 2010).

For further information, see:

http://www.sec.gov/litigation/litreleases/2006/lr19655.htm

 
http://www.sec.gov/litigation/litreleases/2010/lr21475.htm

Last modified: 4/02/2010