UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 18307 / August 25, 2003
SECURITIES AND EXCHANGE COMMISSION v. GABOR S. ACS and PENNY KING HOLDINGS CORP. SEC v. Gabor S. Acs et al., Civ. No. CV-N-03-0463-ECR-VPC D. (Nevada)
On August 21, 2003, the Securities and Exchange Commission filed a complaint in U.S. District Court for the District of Nevada against Gabor S. Acs ("Acs") and his alter ego company, Penny King Holdings Corp. ("Penny King"). The Commission's complaint alleges that between January and May 2002, Acs wrote, edited and approved six false and misleading press releases concerning Quintek Technologies, Inc. ("Quintek") and Eknowledge Group, Inc. ("Eknowledge") and that between at least March and August 2002 he created and maintained two Internet websites containing false statements. The complaint further alleges that the releases and websites contained false and misleading statements concerning, among other things, the financial prospects of Quintek and Eknowledge, a business combination between these two companies, Penny King's assets and Acs' financial experience. According to the complaint, Acs and Penny King also failed to disclose payments made by Quintek and Eknowledge in exchange for touting services.
The Commission's complaint alleges that Acs and Penny King violated Section 17(b) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement of ill-gotten gains and third tier civil penalties against both defendants, and as to Acs, a penny stock bar.