==========================================START OF PAGE 1====== UNITED STATES SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 15119 / October 11, 1996 SECURITIES AND EXCHANGE COMMISSION v. ENVIROMENT HOLDINGS, INC., et al., 3:95-CV-2192-H, USDC, ND/TX (Dallas Division) The Securities and Exchange Commission ("Commission") announced that judgments of permanent injunction and other equitable relief were entered in United States District Court in Dallas, Texas, against Frank P. Zitkevitz ("Zitkevitz") and Charles S. Christopher ("Christopher") on October 3, 1996 and October 4, 1996, respectively. Zitkevitz and Christopher consented to the entry of the judgments without admitting or denying the allegations in the Commission's complaint that they violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 9(a) and 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5 and 10b-6 thereunder, in a scheme to fraudulently promote, distribute, and manipulate the market for the securities of EnvirOment Holdings, Inc., a "penny stock" company based in Dallas. The Court also ordered Christopher to pay disgorgement in the amount of $1,500,000, and Zitkevitz to pay disgorgement in the amount of $237,711, plus prejudgment interest of $100,252.88. Christopher's disgorgement amount was waived based on his demonstrated financial inability to pay, and the Court did not impose a civil money penalty based on his poor financial condition. Zitkevitz filed for protection under Chapter 7 of the United States Bankruptcy Code, and the Commission will seek to enforce the disgorgement judgment in accordance with the applicable provisions of the Bankruptcy Code. ==========================================START OF PAGE 2====== JUDGMENTS ENTERED AGAINST CHARLES S. CHRISTOPHER AND FRANK P. ZITKEVITZ The Commission announced that judgments of permanent injunction and other equitable relief were entered in United States District Court in Dallas, Texas, against Frank P. Zitkevitz (Zitkevitz) and Charles S. Christopher (Christopher) on October 3, 1996 and October 4, 1996, respectively. Zitkevitz and Christopher consented to the entry of the judgments without admitting or denying the allegations in the Commission's complaint that they violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 9(a) and 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5 and 10b-6 thereunder, in a scheme to fraudulently promote, distribute, and manipulate the market for the securities of EnvirOment Holdings, Inc., a "penny stock" company based in Dallas. The Court also ordered Christopher to pay disgorgement in the amount of $1,500,000, and Zitkevitz to pay disgorgement in the amount of $237,711, plus prejudgment interest of $100,252.88. Christopher's disgorgement amount was waived based on his demonstrated financial inability to pay, and the Court did not impose a civil money penalty based on his poor financial condition. Zitkevitz filed for protection under Chapter 7 of the United States Bankruptcy Code, and the Commission will seek to enforce the disgorgement judgment in accordance with the applicable provisions of the Bankruptcy Code. [Securities and Exchange Commission v. EnvirOment Holdings, Inc., et al., 3:95-CV-2192-H, USDC, ND/TX) (LR- ) Phillip W. Offill, Jr. Trial Counsel Fort Worth District Office 817/978-6450