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Litigation Release No. 19298 / July 11, 2005

Securities and Exchange Commission v. Carl R. Rose, Lawrence A. Clasby, et al., Civil Action No. H-04-CV-2799

The Commission announced that on May 6, 2005, the United States District Court for the Southern District of Texas entered a Final Judgment against Defendant Lawrence A. Clasby, based on his consent.

In its complaint, the Commission alleged that Clasby, along with twelve other individuals, carried out a manipulation of two stocks, EpicEdge, Inc., and EVTC, Inc. Clasby was charged with violating the antifraud provisions of the federal securities laws, the stock ownership reporting provisions and the securities registration provisions.

Clasby, without admitting or denying the allegations of the complaint, consented to an order of permanent injunction which permanently restrained and enjoined him from violating, directly or indirectly, Sections 5 and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), Rule 101 of Regulation M thereunder and Section 206(1) and 206(2) of the Investment Advisers Act of 1940. Based on the consent, the Court also ordered Clasby to pay disgorgement and prejudgment interest in the amount of $25,641.83 and a civil penalty in the amount of $75,000.


Modified: 07/11/2005