The Securities and Exchange Commission announced today that it filed a complaint in the U.S. District Court for the Southern District of Florida against Emission Controls Corporation and Syd Cooke, its President and CEO, for violating the antifraud provisions of the federal securities laws by falsely claiming to have developed a device that could decrease harmful emissions while increasing vehicle fuel efficiency.
According to the Commission's Complaint, in a December 2002 demonstration, Cooke used manipulated test results to convince a group of investors and stockbrokers that the device was capable of lowering vehicle emissions to near-zero levels, and that, based on the test results, Cooke and Emission Controls issued a fraudulent January 3, 2003 press release falsely claiming the device could increase fuel efficiency while decreasing harmful emissions.
The Complaint seeks an injunction, civil monetary penalty, and an order of disgorgement against Emission Controls for violations of Section 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5. It seeks an injunction, officer and director bar, civil monetary penalty, and order of disgorgement against Cooke for his violations of Section 10(b) and Rule 10b-5.
Previously, the Commission had ordered a ten-day trading suspension in Emission Controls securities because of questions that had been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, Emission Controls' products and business prospects.
See also Release No. 47234 (January 23, 2003).
