|
UNITED STATES OF AMERICA
|
In the Matter of Alcohol Sensors Int'l, Ltd., Respondents. |
ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS AND NOTICE OF HEARING PURSUANT TO SECTION 12(j) OF THE SECURITIES EXCHANGE ACT |
The Securities and Exchange Commission ("Commission") deems it necessary and appropriate for the protection of investors that public administrative proceedings be, and hereby are, instituted pursuant to Section 12(j) of the Securities Exchange Act of 1934 ("Exchange Act").
After an investigation, the Division of Enforcement alleges that:
1. Alcohol Sensors Int'l, Ltd. ("Alcohol Sensors") (CIK No. 929313)1 was a New York corporation that continues to have equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On November 6, 1998, the Commission obtained a permanent injunction against Alcohol Sensors in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Alcohol Sensors has violated that permanent injunction, having not filed a periodic report since the period ending September 30, 1998. On May 7, 1999, Alcohol Sensors filed a Chapter 11 bankruptcy petition, and that case terminated on June 8, 2001. According to the New York Department of State, the company dissolved by proclamation on September 25, 2002. The company's stock (symbol "ASIL") is quoted on the Pink Sheets.
2. Beachport Entertainment Corp. ("Beachport") (CIK No. 786619) is a Utah corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On March 22, 2000, the Commission obtained a permanent injunction against Beachport by default in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Beachport has violated that permanent injunction, having not filed a periodic report since the period ending December 30, 1997. On August 27, 1999, the company filed a Chapter 7 bankruptcy petition, and that case is still pending in the U.S. Bankruptcy Court for the Central District of California. On April 7, 2004, the Chapter 7 bankruptcy trustee for Beachport filed a motion to sell the company's corporate shell for $20,000. On April 29, 2004, the Division of Enforcement Bankruptcy Counsel appeared in the bankruptcy case on behalf of the Commission as a party in interest pursuant to its regulatory power and filed an opposition to debtor Beachport's motion for approval of a public sale of its corporate shell on the grounds that such a sale constitutes trafficking in a public shell in violation of Section 727(a)(1) of the Bankruptcy Code. The company's stock (symbol "BPRT") is quoted on the Pink Sheets.
3. Biosonics, Inc. ("Biosonics") (CIK No. 352715) is a Pennsylvania corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On February 9, 2001, the Commission obtained a permanent injunction against Biosonics by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Biosonics has violated that permanent injunction, having not filed a periodic report since the period ending June 30, 1999. The company's stock (symbol "BISN") is quoted on the Pink Sheets.
4. Compressent Corp. ("Compressent Corp. ") (CIK No. 1013273) was a Florida corporation; it is now defunct, but it continues to have equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On March 27, 2000, the Commission obtained a permanent injunction against Compressent by default in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Compressent has violated that permanent injunction, having not filed a periodic report since the period ending June 30, 1998. According to the Florida Department of State, the corporation is dissolved. The company's stock (symbol "CSNE") is quoted on the Pink Sheets.
5. Eye Cash Networks, Inc. ("Eye Cash Networks") (f/k/a eConnect and Betting, Inc.) (CIK No. 911934) is a Nevada corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On March 16, 1999, the Commission obtained a permanent injunction against Eye Cash Networks by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Eye Cash Networks has violated that permanent injunction, having not filed its annual report for 2002, nor its quarterly reports for 2003. On March 13, 2000, the Commission suspended trading in Eye Cash Networks' stock pursuant to Exchange Act Section 12(k). On April 7, 2000, the U.S. District Court for the Central District of California entered a permanent injunction against Eye Cash Networks by consent for violations of the antifraud provisions of the federal securities laws. On July 25, 2002, the Commission suspended trading in the company's stock. On May 5, 2003, the U.S. District Court for the Central District of California entered a permanent injunction against Eye Cash Networks by consent for violations of the antifraud provisions of the federal securities laws, and ordered the company to disgorge $70,000 in ill-gotten gains. On August 11, 2003, the former CEO of Eye Cash Networks (then called "eConnect"), Thomas S. Hughes, pleaded guilty to three counts of securities fraud and one count of criminal contempt in the U.S. District Court for the Central District of California. The securities fraud involved false statements about Eye Cash Networks (then called "eConnect") that inflated the price of its stock, and the criminal contempt charge was for violation of the April 7, 2000 injunction obtained by the SEC against Hughes and Eye Cash Networks (then called "eConnect"). The Eye Cash Networks has a delinquent status with the Nevada Secretary of State. The company's stock (symbol "ECNI") is quoted on the Pink Sheets.
6. Hamilton-Biophile Companies ("Hamilton-Biophile") (CIK No. 726608) is a Delaware corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On June 4, 1999, the Commission obtained a permanent injunction against Hamilton-Biophile (then called "Mehl Biophile") by default in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). The issuer has violated that permanent injunction by not filing any periodic reports since the period ending September 30, 2001, and it has had a void status with the Delaware Secretary of State since March 1, 2000. On January 3, 2000, the company filed a Chapter 11 bankruptcy petition, and the case was terminated on July 3, 2003. The company's stock (symbol "HBPH") is quoted on the Pink Sheets.
7. Holly Holdings, Inc. ("Holly Holdings") (CIK No. 909753) is a New Jersey corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(b). On January 8, 1998, the Commission obtained a permanent injunction against Holly Holdings by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Holly Holdings has violated that permanent injunction, having not filed a periodic report since the period ending December 31, 1997. The company's common stock (symbol "HOPR") and preferred stock (symbol "HOPRP") are quoted on the Pink Sheets.
8. Intelligent Decision Systems, Inc. ("Intelligent Decision Systems") (CIK No. 879500) is a Delaware corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On January 2, 2001, the Commission obtained a permanent injunction against Intelligent Decision Systems by default in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Intelligent Decision Systems has violated that permanent injunction, having not filed a periodic report since the period ending March 31, 1998, and it has had a void status with the Delaware Secretary of State since March 1, 2000. The company's common stock (symbol "IDSI") is quoted on the Pink Sheets.
9. Long Distance Direct Holdings, Inc. ("Long Distance Direct Holdings") (CIK No. 844063) is a Nevada corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On March 13, 2000, the Commission obtained a permanent injunction against Long Distance Direct Holdings by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Long Distance Direct Holdings has violated that permanent injunction, having not filed a periodic report since the period ending September 30, 1998. The company has a default status with the Nevada Secretary of State. The company's common stock (symbol "LDDI") is quoted on the Pink Sheets.
10. LRG Restaurant Group, Inc. ("LRG ") (CIK No. 746783) is a British Columbia corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On August 26, 1998, the Commission obtained a permanent injunction against LRG Restaurant Group by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). LRG has violated that permanent injunction, having not filed a periodic report since the period ending August 31, 1996. The company's stock (symbol "LRGI") is quoted on the Pink Sheets.
11. Nevada Manhattan Group, Inc. ("Nevada Manhattan") (CIK No. 848821) was a Nevada corporation; it is now defunct, but it continues to have equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On March 10, 2000, the Commission obtained a permanent injunction against Nevada Manhattan Group by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Nevada Manhattan Group has violated that permanent injunction, having not filed a periodic report since the period ending May 31, 1999. The Nevada Secretary of State has revoked the company's corporate charter. The company's stock (symbol "NVMH") is quoted on the Pink Sheets.
12. Parallel Technologies, Inc. ("Parallel Technologies") (CIK No. 710846) is a Nevada corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On August 30, 1996, the Commission obtained a permanent injunction against Parallel Technologies by default in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Parallel Technologies violated that permanent injunction, having not filed a periodic report since the period ending September 30, 1994. The company's stock (symbol "PLLK") is quoted on the Pink Sheets.
13. Quadratech, Inc. ("Quadratech") (CIK No. 1001433) was a Nevada corporation; it is now defunct, but it continues to have equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On June 16, 1998, the Commission obtained a permanent injunction against Quadratech, Inc. by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Quadratech violated that permanent injunction, having not filed a periodic report since the period ending September 30, 2000. The Nevada Secretary of State has revoked the company's corporate charter. The company's stock (symbol "QUDT") is quoted on the Pink Sheets.
14. Redneck Foods, Inc. ("Redneck Foods") (CIK No. 1048057) is a Delaware corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On June 12, 2001, the Commission obtained a permanent injunction against Redneck Foods by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Redneck Foods violated that permanent injunction, having not filed a periodic report since the period ending September 30, 2001. Redneck Foods has had a void status with the Delaware Secretary of State since March 1, 2000. The company's stock (symbol "RDNK") is quoted on the Pink Sheets.
15. Safetech Industries, Inc. ("Safetech Industries") (f/k/a Bernstein Leibstone Associates, Inc.) (CIK No. 849343) was a New York corporation; it is now defunct, but it continues to have equity securities registered with the Commission pursuant to Section 12(g). On December 2, 1998, the Commission obtained a permanent injunction against Safetech Industries by default in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Safetech Industries violated that permanent injunction, having not filed a periodic report since the period ending September 30, 1997. The New York Department of State reflects that the company was dissolved on June 27, 2001. The company's stock (symbol "SFTH") is quoted on the Pink Sheets.
16. Viking Resources Int'l, Inc. ("Viking Resources") (CIK No. 836433) is a Delaware corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On March 10, 1998, the Commission obtained a permanent injunction against Viking Resources by consent in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Viking Resources violated that permanent injunction, having not filed a periodic report since the period ending March 31, 1999. The company has had a void status with the Delaware Secretary of State since March 1, 1998. The company's stock (symbol "VIKG") is quoted on the Pink Sheets.
17. Xavier Corp. (CIK No. 921905) is a Texas corporation with equity securities registered with the Commission pursuant to Exchange Act Section 12(g). On April 16, 1998, the Commission obtained a permanent injunction against Xavier Corp. by default in the United States District Court for the District of Columbia. The injunction enjoined the issuer and its officers and agents from causing the issuer to fail to file timely periodic reports with the Commission in violation of Exchange Act Section 13(a). Xavier Corp. violated that permanent injunction, having not filed a periodic report since the period ending September 30, 1996. The company's stock (symbol "XVRC") is quoted on the Pink Sheets.
18. The Commission previously filed actions in the United States District Court for the District of Columbia and obtained permanent injunctions against these seventeen companies. Each of the seventeen injunctions enjoined these issuers from being delinquent in their required periodic filings with the Commission. All of these companies have failed to obey the respective orders of the district court as all of them have continued to be delinquent in their Commission filings for several years. See Chart of Delinquent Filings, attached hereto as Appendix 1.
19. Exchange Act Section 13(a) and the rules promulgated thereunder require issuers of securities registered pursuant to Exchange Act Section 12 to file with the Commission current and accurate information in periodic reports, even if the registration is voluntary under Section 12(g). Specifically, Rule 13a-1 requires issuers to file annual reports (Forms 10-K or 10-KSB), and Rule 13a-13 requires issuers to file quarterly reports (Forms 10-Q or 10-QSB).
20. As a result of the foregoing, all of the Respondents failed to comply with Exchange Act Section 13(a) and Rules 13a-1 and 13a-13 thereunder.
In view of the allegations made by the Division of Enforcement, the Commission deems it necessary and appropriate for the protection of investors that public administrative proceedings be instituted pursuant to Section 12(j) of the Exchange Act to determine:
A. Whether the allegations contained in Section II of this Order are true and, in connection therewith, to afford the Respondents an opportunity to establish any defenses to such allegations; and
B. Whether it is necessary and appropriate for the protection of investors to suspend for a period not to exceed twelve months or revoke the registration of securities of the Respondents identified in Section II pursuant to Section 12 of the Exchange Act.
IT IS HEREBY ORDERED that a public hearing for the purpose of taking evidence on the questions set forth in Section III hereof shall be convened at a time and placed to be fixed, and before an Administrative Law Judge to be designated by further order as provided by Rule 200 of the Commission's Rules of Practice [17 C.F.R. § 201.200].
IT IS HEREBY FURTHER ORDERED that Respondents shall file Answers to the allegations contained in this Order within ten (10) days after service of this Order, as provided by Rule 220(b) of the Commission's Rules of Practice [17 C.F.R. § 201.220(b)].
If Respondents fail to file the directed Answers, or fail to appear at a hearing after being duly notified, the Respondents may be deemed in default and the proceedings may be determined against them upon consideration of this Order, the allegations of which may be deemed to be true as provided by Rules 155(a), 220(f), 221(f), and 310 of the Commission's Rules of Practice [17 C.F.R. §§ 201.155(a), 201.220(f), 201.221(f), and 201.310].
This Order shall be served forthwith upon Respondents personally or by certified mail.
IT IS FURTHER ORDERED that the Administrative Law Judge shall issue an initial decision no later than 120 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice [17 C.F.R. § 201.360(a)(2)].
In the absence of an appropriate waiver, no officer or employee of the Commission engaged in the performance of investigative or prosecuting functions in this or any factually related proceeding will be permitted to participate or advise in the decision of this matter, except as witness or counsel in proceedings held pursuant to notice. Since this proceeding is not "rule making" within the meaning of Section 551 of the Administrative Procedure Act, it is not deemed subject to the provisions of Section 553 delaying the effective date of any final Commission action.
By the Commission.
Jonathan G. Katz
Secretary
1 "CIK" stands for "Central Index Key," which is the unique number the Commission assigns to each entity that submits filings to it, and which allows the Commission to differentiate between filing entities with similar names.
Chart of Delinquent Filings In the Matter of Alcohol Sensors International, Ltd., et al. |
http://www.sec.gov/litigation/admin/34-49823-o-2.htm
Home | Previous Page | Modified: 06/08/2004 |