SECURITIES AND EXCHANGE COMMISSION V. DARREN SILVERMAN AND MATTHEW BRENNER, Case No. 04-80153-CIV-COHN (S.D. Fla.)

The Securities and Exchange Commission ("SEC") announced that on May 7, 2004, the United States District Court for the Southern District of Florida entered Judgments of Permanent Injunction and Other Relief ("Judgments") against Defendants Darren Silverman ("Silverman") and Matthew Brenner ("Brenner"). The Judgments, entered with the consent of Silverman and Brenner, without admitting or denying the allegations of the SEC's Complaint, enjoin them from violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder; and violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The Judgments also find that Silverman and Brenner acted as "control persons" under Section 20(a) of the Exchange Act and provide for officer and director bars. In addition to injunctive relief, the Judgments provide for disgorgement and the imposition of civil penalties in amounts to be reached by agreement of the parties and/or determined by the Court upon the SEC's motion.

For further information, see Litigation Release No. 18597 (February 25, 2004).