UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Act of 1933
Release No. 8118 / August 2, 2002
Securities Exchange Act of 1934
Release No. 46302 / August 2, 2002
Accounting and Auditing Enforcement
Release No. 1608 / August 2, 2002
File No. 3-10858
IN THE MATTER OF GAS AND OIL TECHNOLOGIES, INC., INGRID ALIET-GASS AND GLEN MORINAKA, CPA
The Commission instituted cease-and-desist proceedings against Gas and Oil Technologies, Inc., Ingrid Aliet-Gass and Glen Morinaka, CPA and proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice, against Morinaka. The Division of Enforcement has alleged that Gas & Oil and Gass violated, and Morinaka willfully violated, Section 17(a) of the Securities Act of 1933.
The order instituting proceedings alleges that in October 2001, Gas & Oil filed a registration statement on Form S-1 with the Commission in which contained financial statements in which the company improperly recorded, as both an asset and income, $21.75 million from the acquisition of certain Russian patents. It further alleges that the $21.75 million represented 100% of Gas & Oil's income and nearly all of its assets. The Order also alleges that the failure of Gas & Oil, Gass and Morinaka to properly record the patent acquisition caused the company's financial statements to materially misrepresent its financial condition and results of operations. The Order also alleges Gas & Oil's registration statement made material misrepresentations and omitted to state material facts concerning the company's business operations and assets.
It is alleged that Gass and Morinaka were personally involved in preparing the misleading disclosure made in the registration statement. It is further alleged that Morinaka, a certified public accountant, prepared the financial statements included in the registration statement.
A public hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Gas & Oil, Gass, and Morinaka an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate.