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U.S. Securities and Exchange Commission


LITIGATION RELEASE NO. 16435 \ February 14, 2000

SEC v. Anita Carlisle, et al. W-98-CA-352, USDC, WD/TX [Waco Division]

The Securities and Exchange Commission announced that, on November 16, 1999, a final judgment was entered against J. Scott Sitra (Sitra) in the referenced civil action. Without admitting or denying any of the allegations in the Commission's Complaint, Sitra was permanently enjoined from violations of Sections 17(a) and (b) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Sitra was ordered to pay disgorgement and prejudgment interest of $12,767 and a civil money penalty of $12,767.

The Commission's Complaint alleged that Sitra had an agreement with Great White Marine & Recreation, Inc., (Great White or the company) to provide "investor relations" and other promotional services. Sitra published favorable promotional information about Great White in exchange for cash and stock. Sitra spoke glowingly about Great White and encouraged investors to purchase its stock, while never disclosing his compensation arrangement with it. Sitra took advantage of the market interest his promotions created and sold his stock into the market contrary to his recommendations.

For further information, see Litigation Release No. 15949.