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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22426 / July 30, 2012

Securities and Exchange Commission v. LocatePlus Holdings Corporation, Jon Latorella and James Fields, No. 1:10-CV-11751-DPW (D. Mass. October 14, 2010)

In the Matter of LocatePlus Holdings Corporation, Administrative Proceedings File No. 3-14858 (April 30, 2012)

The Securities and Exchange Commission (Commission) announced today that LocatePlus Holdings Corporation (LocatePlus) has agreed to settle charges it engaged in securities fraud from 2005 through 2007 by misleading investors about its funding and revenue in violation of the antifraud and reporting provisions of the federal securities laws. As part of the settlement, LocatePlus consented to an administrative order which prevents it from selling its securities in the public market.

Without admitting or denying the Commission's allegations, LocatePlus consented to the entry of a final judgment enjoining it from further violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a),13(b)(2)(A), 13(b)(2)(B), of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The proposed judgment, which is subject to court approval, will not impose monetary relief against LocatePlus in light of its bankruptcy and financial condition. LocatePlus also consented to an administrative order entered today, in separate previously-instituted administrative proceedings, revoking the registration of its securities pursuant to Section 12(j) of the Exchange Act based upon its filing of certain materially deficient reports and its repeated failure to file other required periodic reports. As a result of that administrative order, LocatePlus' securities will no longer trade in the public markets.

On October 14, 2010, the Commission filed a civil enforcement action in federal district court in Massachusetts alleging that LocatePlus violated the anti-fraud and the books and records provisions of the federal securities laws. LocatePlus is a former Beverly, Massachusetts-based company that sold on-line access to public record databases for investigative searches. On November 10, 2010, the United States Attorney's Office for the District of Massachusetts unsealed an indictment against former LocatePlus chief executive officer Jon Latorella, and former LocatePlus chief financial officer James Fields, charging them with conspiracy to commit securities fraud for their roles in a scheme to fraudulently inflate revenue at LocatePlus, as well as a scheme to manipulate the stock of another company. On the same day, the Commission amended its previously-filed civil injunctive action against LocatePlus, arising out of the same conduct, to add Latorella and Fields as defendants. On June 16, 2011, LocatePlus filed a petition for protection under Chapter 11 of the U.S. Bankruptcy Code and the U.S. Bankruptcy Court for the District of Massachusetts thereafter appointed a Trustee. On June 14, 2012, Latorella was sentenced to 60 months' imprisonment in the criminal case, to be followed by three years of supervised release, and the payment of restitution to be determined at a later hearing. The Commission's civil injunctive action against Latorella and Fields is stayed until the conclusion of the criminal case, which remains pending against Fields.

For further information, see Litigation Release No. 22394 (June 18, 2012); Litigation Release No. 21474 (April 2, 2010); Litigation Release No. 21692 (October 14, 2010); Litigation Release No. 21692 (November 10, 2010); Litigation Release No. 21763 (December 6, 2010); Securities Exchange Act Release No. 64607 (June 6, 2011).

 

http://www.sec.gov/litigation/litreleases/2012/lr22426.htm


Modified: 07/30/2012