SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16102 \ March 31, 1999 Accounting and Auditing Enforcement Release No. 1119 \ March 31, 1999 Securities and Exchange Commission v. Guido Volante and Miriam Mercado, Case No. 97-9724-CIV-Graham The Securities and Exchange Commission (SEC) announced that on October 19, 1998 the Honorable Donald L. Graham, United States District Judge for the Southern District of Florida permanently enjoined Defendant Guido Volante by consent, from violating Sections 10(b), 13(a) and 13(b)(2)(A) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2, thereunder. The Court also permanently barred Volante from acting as an officer or director of any issuer that has a class of securities registered with the Commission pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act. Based upon Defendant Volante’s sworn representations in his Statement of Financial Condition submitted to the Commission, the Court did not order him to pay a civil penalty pursuant to Section 21(d)(3) of the Exchange Act. On September 18, 1997 the Court permanently enjoined Defendant Miriam Mercado by consent, from violating Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2, thereunder. The Court also permanently barred Mercado from acting as an officer or director of any issuer that has a class of securities registered with the Commission pursuant to Section 12 of the Exchange Act, or that is required to file reports pursuant to Section 15(d) of the Exchange Act. The Court left the issue of civil money penalties open and on December 1, 1998, based upon Defendant Mercado’s sworn representations in her Statement of Financial Condition, submitted to the Commission, entered an order that did not require her to pay a civil penalty pursuant to Section 21(d)(3) of the Exchange Act. The Complaint which had been filed on September 16, 1997 alleged that Volante and Mercado were former principal officers of Century Technologies, Inc., a Section 12(g) reporting company, which had filed false and misleading periodic reports, press releases and other public communications. The fraudulent representations related to Century’s purported ownership of certain feature films and feature film license rights and improper recording of feature films and license rights as assets on its balance sheet which resulted in the overstatement of the value of the Company’s total assets by as much as 90%. Century also failed to maintain books and records which accurately reflected its financial condition and made misrepresentations to its auditors. Volante and Mercado, who were Century’s president and secretary/treasurer respectively, were the persons responsible for Century’s illegal activities. On September 16, 1997, the Commission instituted and simultaneously settled cease- and-desist proceedings against Century. Century consented to cease and desist from committing or causing any violations and future violations of Sections 10(b), 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder. (EA Release No. 39081, AAER No. 961)