Wolfson, et al.

The Securities and Exchange Commission announced today that on November 25, 2003, the Honorable Tena Campbell, United States District Judge for the District of Utah, Central Division, entered a Judgment of Permanent Injunction as to Robert Pozner of Ridgewood, New Jersey. Pozner consented to entry of the Judgment.

The Judgment against Pozner enjoins him from future violations of the antifraud provisions of the securities laws (Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder). The Judgment also orders that the Court will retain jurisdiction to decide the appropriate amount, if any, of disgorgement, prejudgment interest and penalties against Pozner. The Judgment further states that in any motion or hearing to determine the appropriate amount of disgorgement or civil penalties, Pozner will not contest his liability under the foregoing securities laws.

The Commission's Complaint alleged that Pozner, then a trader at a brokerage firm called Glenn Michael Financial Corporation, engaged in a scheme with other defendants from July through November 2000 to manipulate the public trading market for stock issued by Freedom Surf, Inc. (See Litigation Release No. 17756, September 30, 2002). Freedom Surf was then a start-up company with offices in Huntington Beach, California. The Complaint alleged that certain defendants transferred Freedom Surf stock at no cost to defendant Allen Wolfson. Wolfson, Pozner and other defendants then participated in a scheme to artificially run up the price of Freedom Surf stock. The Complaint alleged that Pozner and others advanced the bid quotation in Freedom Surf stock without relation to genuine market demand or worth of the company. The Complaint alleged that in less than two months, Pozner, at Wolfson's direction, and without client orders, bid up the stock from $5 to $35. The stock manipulation scheme perpetrated by Pozner and others appeared to shut down when SEC staff began investigating in November 2000.