Ronald A. Knittle and Gregory G. Vernon

ADMINISTRATIVE PROCEEDING
File No. 3-10056

ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST RONALD A. KNITTLE AND GREGORY G. VERNON

The Commission announced that it has instituted public administrative proceedings pursuant to Section 15(b)(6)(A) of the Securities Exchange Act of 1934 ("Exchange Act") against Ronald A. Knittle ("Knittle") and Gregory G. Vernon ("Vernon"). Section 15(b)(6)(A) allows the Commission to sanction persons who have participated in an offering of penny stock. In the Order the Division of Enforcement alleges that the respondents were enjoined from future violations of the federal securities laws in a Commission civil action. [SEC v. Golden Eagle International, Inc., et al., Civil Action No. 98-Z-1020, U.S.D.C. Colo.] The Division further alleges that the conduct for which they were enjoined involved a penny stock, Golden Eagle International, Inc.

A hearing will be held to determine whether the allegations are true and, if so, what sanctions, if any, are appropriate in