UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 15587 / December 9, 1997 UNITED STATES OF AMERICA v. KARL L. DAHLSTROM, et al. 96-CR-157-ALL, USDC, SD/TX [Houston Division] The Securities and Exchange Commission ("Commission") and the United States Attorney for the Southern District of Texas announced that on December 5, 1997, Karl L. Dahlstrom was sentenced to 78 months in federal prison with five years of supervised release, and Dahlstrom's daughter, Karla D. Dahlstrom, received 46 months in federal prison with five years of supervised release. On December 4, 1997, two other defendants, Hubert Leon Leopard and Richard E. Lopez, each received five years probation. The defendants were also ordered, jointly and severally, to pay $1,997,003 restitution. The defendants were indicted for their involvement in a nationwide solicitation campaign for the purpose of selling unregistered shares of Inferno Snuffers, Inc., ("ISI"), and Inferno Engineering and Consulting, Inc. ("IEC"). ISI and IEC, under Karl Dahlstrom's direction, were marketing "Uni-Snuff", a product claimed to be useful in extinguishing and suppressing fires, and the "Snuffer System", a method of dispensing Uni- Snuff. The criminal charges are based on the same activities alleged in a civil injunctive action brought by the Commission on September 30, 1992. ======END OF PAGE 1====== KARL L. DAHLSTROM, KARLA D. DAHLSTROM, HUBERT LEOPARD AND RICHARD LOPEZ SENTENCED The Commission and the United States Attorney for the Southern District of Texas announced that on December 5, Karl L. Dahlstrom was sentenced to 78 months in federal prison with five years of supervised release, and Dahlstrom's daughter, Karla D. Dahlstrom, received 46 months in federal prison with five years of supervised release. On December 4, two other defendants, Hubert Leon Leopard and Richard E. Lopez, each received five years probation. The defendants were also ordered, jointly and severally, to pay $1,997,003 restitution. The defendants were indicted for their involvement in a nationwide solicitation campaign for the purpose of selling unregistered shares of Inferno Snuffers, Inc., (ISI), and Inferno Engineering and Consulting, Inc. (IEC). ISI and IEC, under Karl Dahlstrom's direction, were marketing "Uni-Snuff", a product claimed to be useful in extinguishing and suppressing fires, and the "Snuffer System", a method of dispensing Uni-Snuff. The criminal charges are based on the same activities alleged in a civil injunctive action brought by the Commission on September 30, 1992.[United States of America v. Karl L. Dahlstrom, et al., 96-CR- 157-ALL, USDC, SD/TX] (LR- ) PHILLIP W. OFFILL, JR Trial Counsel Fort Worth District Office ======END OF PAGE 2======