-------------------- BEGINNING OF PAGE #1 ------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 14683 / October 6, 1995 SECURITIES AND EXCHANGE COMMISSION V. ENVIROMINT HOLDINGS, INC., CHARLES CHRISTOPHER, KATHRYN A. PREVITE, FRANK P. ZITKEVITZ, DOMENICK M. SCHINA, IDATA, INC., AND ROBERT BOGUTSKI, 3:95-CV-2192-H, USDC, ND/TX (Dallas Division) The Securities and Exchange Commission ("Commission") announced that on September 29, 1995, it filed a Complaint for Civil Injunction and Other Equitable Relief ("Complaint") in the United States District Court for the Northern District of Texas against EnvirOmint Holdings, Inc. ("EHI"), Charles Christopher ("Christopher"), Kathryn A. Previte ("Previte"), Frank P. Zitkevitz ("Zitkevitz"), Domenick M. Schina ("Schina"), Idata, Inc. ("Idata"), and Robert Bogutski ("Bogutski"). The Complaint alleges violations of the antifraud and registration provisions of the federal securities laws in the course of a scheme to promote, distribute, and manipulate the market for, securities of EHI, a "penny stock" company. The Complaint alleges, among other things, that Christopher, while in control of EHI, and with the participation of certain other defendants, misappropriated shares of EHI common stock and sold these shares into the market. As set forth in the Complaint, Idata, EHI's transfer agent, acting on the instructions of Christopher, destroyed records relating to ownership of these shares and transferred the shares to a shell corporation controlled by Christopher. The Complaint further alleges that Christopher, with the participation of certain other defendants, improperly used Regulation S and Form S-8 registrations to make public distributions of EHI stock in the United States. In addition, the Complaint alleges that Christopher and certain other defendants disseminated false and misleading information into the market through press releases, promotional materials and Commission filings. As set forth in the Complaint, Christopher paid undisclosed cash and free-trading EHI stock to registered representatives of broker-dealers, including Zitkevitz and Schina, as inducements to recommended EHI common stock to their clients. Finally, the Complaint alleges that Christopher, Previte and Zitkevitz manipulated the price of EHI stock by engaging in wash sales and matched orders. The Commission's Complaint seeks permanent injunctions against all defendants. The Complaint also seeks disgorgement of profits from Christopher, Previte, Schina and Zitkevitz as well as civil penalties against Christopher, Previte, Schina, Zitkevitz, Idata and Bogutski.