SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17064 / July 9, 2001
Securities and Exchange Commission v. Green Oasis Environmental, Inc., William D. Carraway, Raymond C. O'Brien and Ronald V. Reece, Defendants, Mary Ann Carraway, Relief Defendant, Civil Action No. 2:98-1913-23 (D. S.C. March 26, 2001)
The Securities and Exchange Commission announced that on March 26, 2001, Judge Patrick Michael Duffy of the United States District Court for the District of South Carolina entered a Final Judgment of Permanent Injunction and Other Relief as to Defendant William D. Carraway ("Carraway") restraining and enjoining him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. Carraway consented to the entry of the Final Judgment of Permanent Injunction and Other Relief without admitting or denying the allegations of the Commission's complaint. Further, the Final Judgment ordered Carraway pay disgorgment in the amount of $771,992, with pre-judgment interest thereon in the amount of $229,085, but waived payment based upon Carraway's demonstrated inability to pay. The Final Judgment did not impose a civil penalty based upon Carraway's demonstrated inability to pay. The Final Judgment barred Carraway for a period of five years from serving as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act.
Also on March 26, 2001, the Court entered Final Judgment as to Relief Defendant Mary Ann Carraway, which ordered her to pay disgorgement in the amount of $633,926, but waived payment of disgorgement based upon her inability to pay. Mary Ann Carraway consented to the entry of the Final Judgment without admitting or denying the facts alleged in the Commission's complaint.
The Commission's complaint, filed on July 1, 1998, alleged that Green Oasis Environmental, Inc. ("Green Oasis") and Carraway, and Raymond C. O'Brien published false and misleading press releases prepared by the public relations firm the company retained. The complaint alleged that Carraway paid others to publish purportedly objective descriptions about the company and to encourage positive discussion about the company in Internet news groups. According to the complaint, Carraway used these false press releases to increase investor interest in the company.
The complaint sought a permanent injunction against Carraway and other defendants to prevent future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, disgorgement of the defendants' gains from their sales of Green Oasis stock and civil penalties. The Commission's complaint also sought disgorgement from Mary Ann Carraway of the alleged gains she received from her sales of Green Oasis securities. Previously, Judge Duffy entered Orders of Permanent Injunction against Green Oasis in August 1998, and against other defendants in December 1998 and in May 1999.
Investors are advised to read the SEC's "Cyberspace" Alert before purchasing any investment promoted on the Internet. The free publication, which alerts investors to the telltale signs of online investment fraud, is available on the Investor Assistance and Complaints link of the SEC's Home Page on the World Wide Web <www.sec.gov>. For more information about Internet fraud, visit http://www.sec.gov/divisions/enforce/internetenforce.htm. To report suspicious activity involving possible Internet fraud, visit http://www.sec.gov/complaint.shtml. Investors can also mail a report to the SEC's Enforcement Complaint Center, Mail Stop 8-4, 450 Fifth Street, Washington, D.C. 20549.