U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21565 / June 22, 2010

Securities and Exchange Commission v. Mobile Ready Entertainment Corp., Michael H. Magolnick, and Craig A. Mora, Civil Case No. 1:08-CV-2263-JEC, U.S.D.C., N.D. Ga. (Atlanta)

SEC OBTAINS JUDGMENTS AGAINST MOBILE READY ENTERTAINMENT CORPORATION, MICHAEL H. MAGOLNICK, AND CRAIG A. MORA IN PUMP AND DUMP STOCK SCHEME

On April 14, 2010, the Court entered Final Judgment which permanently enjoined Mobile Ready from future violations of Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. Mobile Ready consented to the issuance of the Final Judgment without admitting or denying any of the allegations in the Complaint.

On May 18, 2010, the Court entered Final Judgments against defendants Magolnick and Mora. The Final Judgments as to Magolnick and Mora permanently enjoined both Magolnick and Mora from committing further violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 5 of the Securities Act and imposed 5-year officer/director and penny stock bars against both Magolnick and Mora. They consented to the issuance of the Final Judgments without admitting or denying any allegations in the Complaint.

The Final Judgment as to defendant Magolnick determined that he was liable for disgorgement of $69,949.69 and prejudgment interest of $4,719.04. Based upon Magolnick's sworn financial statement, all but $40,000 of the disgorgement and prejudgment interest was waived and no civil penalty was imposed. Magolnick consented to the issuance of the Final Judgment without admitting or denying any of the allegations in the Complaint.

The Final Judgment as to defendant Mora determined that he was liable for disgorgement of $72,589.32 and prejudgment interest of $4,897.12. Based upon Mora's sworn financial statement, all but $15,000 payment of the disgorgement and prejudgment interest was waived and no civil penalty was imposed. Mora consented to the issuance of the Final Judgment without admitting or denying any of the allegations in the Complaint.

In its Complaint, the Commission alleged that Mobile Ready, Magolnick, and Mora engaged in insider trading and securities registration violations. After December 2006, Defendants issued press releases containing baseless revenue projections and misleading information about business relationships and future contracts to create artificial demand for Mobile Ready stock. Magolnick and Mora then sold substantial amounts of restricted shares, not exempt from registration, when the price and trading volume of Mobile Ready stock increased.

Magolnick, a resident of Cumming, Georgia, was Mobile Ready's co-chief executive officer from December 2006 until his resignation in December 2007. Mora, formerly a resident of Cumming, Georgia, was Mobile Ready's co-chief executive officer until Magolnick resigned in December 2007.

 
http://www.sec.gov/litigation/litreleases/2010/lr21565.htm

Last modified: 6/22/2010