UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17494 / April 29, 2002
SECURITIES AND EXCHANGE COMMISSION v. LARRY A. STOCKETT, No. CV-S02-0607-PMP-LRL (USDC D. Nevada).
The Securities and Exchange Commission ("Commission") announced that it filed an injunctive action on April 26, 2002 against Nevada resident Larry A. Stockett. The Commission's complaint alleges that between August 1999 and the present, Stockett has orchestrated fraudulent schemes regarding Hightec, Inc. ("Hightec") and The S.I.N.C.L.A.R.E. Group, Inc. ("Sinclare"), two publicly held but legally defunct corporate entities of which he is the sole officer and director. The complaint further alleges that Stockett has issued numerous false statements concerning, among other things, Stockett's disciplinary history and the legal status and current operations of Hightec and Sinclare. Moreover, the complaint alleges that Stockett sold restricted Hightec stock in unregistered transactions for total profits of approximately $583,687 during dissemination of the false statements. According to the complaint, Stockett has failed to file mandatory periodic and current reports with the Commission on behalf of Hightec and Sinclare since late 1996.
The Commission's complaint alleges that Stockett: (1) violated Sections 5(a), and 5(c) of the Securities Act of 1933, Sections 10(b), 13(d) and 16(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13d-1, 13d-2, 16a-2, and 16a-3 thereunder; (2) aided and abetted the violations of Hightec of Sections 13(a), 13(d) and 16(a) of the Exchange Act and Rules 12b-25, 13a-1, 13a-11, 13a-13, 13d-1, 16a-2 and 16a-3 thereunder; and (3) aided and abetted the violations of Sinclare of Section 13(a) of the Exchange Act and Rules 12b-25, 13a-1, 13a-11 and 13a-13 thereunder. The complaint seeks preliminary and permanent injunctions, disgorgement and prejudgment interest, an officer and director bar, and third-tier civil penalties against Stockett.
For tips on how to avoid Internet "pump-and-dump" stock manipulation schemes, visit http://www.sec.gov/investor/online/pump.htm. For more information about Internet fraud, visit http://www.sec.gov/investor/pubs/cyberfraud.htm. To report suspicious activity involving possible Internet fraud, visit http://www.sec.gov/complaint.shtml.