U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17741 / September 24, 2002
SEC v. Composite Holdings, Inc., aka Composite Industries, Inc. fka World Homes, Inc., and Merle Ferguson, Case No. CV-S-01-0658-PMP-LRL (USDC D.Nev.)
On September 13, 2002, the Honorable Philip M. Pro, United States District Judge, entered an order holding Defendants Composite Holdings, Inc., aka Composite Industries, Inc. fka World Homes, Inc., and Merle Ferguson in civil contempt for violations of the January 14, 2002, Judgment which, among other provisions, enjoined Composite and Ferguson from violations of the antifraud provisions of the federal securities laws.
The Court further ordered that Composite and Ferguson will remain in contempt until such time as Composite and Ferguson have conclusively demonstrated that they are not engaging in conduct enjoined by the January 14, 2002, Judgment. The Court also ordered that until Composite and Ferguson purge themselves of the contempt by conclusively demonstrating that they are not engaging in conduct which violates the January 14, 2002, Judgement, each defendant will pay a penalty of $120,000 plus $5,000 per day until they have corrected their false and misleading public statements.