U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19618 / March 21, 2006
SEC v. Wind Farming, Inc., et al., Case No. 05 C 4259 (N. D. Ill., filed July 25, 2005)
On March 20, 2006, the Honorable Milton I. Shadur of the United States District Court for the Northern District of Illinois, Eastern Division, entered an order holding Defendant Raymond J. McNamee in civil contempt for violating the penny stock bars entered against him in the temporary restraining order issued on July 25, 2005 and in the preliminary injunction order issued on August 8, 2005 (collectively the Orders). The Court ordered McNamee to pay $564,738.34, representing the proceeds McNamee obtained as a result of his violation of the Court's temporary and preliminary penny stock bars. In a motion filed on January 27, 2006, the Commission alleged that McNamee violated the penny stock bars contained in the Orders by participating in the offering of the penny stock of Energy Finders, Inc. The Commission further alleged that McNamee obtained 2,403,827 Energy Finders unregistered shares through a purported Rule 504 offering, sold 403,827 of these unregistered shares into the public market for $564,738.34 from July 26, 2005 to August 26, 2005, and then re-distributed the remaining 2 million shares to other individuals and entities.
For further information, see Litigation Release No. 19311 (July 26, 2005) and No. 19546 (January 30, 2006).