U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19812 / August 24, 2006
SEC v. Vincent P. Iannazzo and Milton E. Stanson, Civil Action No. 04 CIV 02989 (MBM) (S.D.N.Y.)
SEC Settles Fraud Charges Against Former Executive of Emex Corporation
The Securities and Exchange Commission today announced that the Honorable Michael B. Mukasey of the United States District Court for the Southern District of New York has entered a final judgment against defendant Vincent P. Iannazzo. During 2000 and 2001, Iannazzo was a director and chairman of Emex Corporation's Executive Committee. Emex was a start-up energy technology and mineral exploration company. The judgment permanently enjoins Iannazzo from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and from aiding and abetting violations of Section 13(a) of the Exchange Act. In addition, Iannazzo was permanently barred from serving as an officer and director of any public company and ordered to pay a $120,000 civil penalty.
The Commission's amended complaint alleges that Iannazzo and co-defendant Milton E. Stanson violated various antifraud provisions of the federal securities laws. According to the amended complaint, the defendants devised and orchestrated a scheme to artificially inflate Emex's stock price by causing Emex to issue a series of false and misleading press releases and postings on Emex's website, as well as a false and misleading year 2000 Annual Report. Iannazzo and Stanson's illegal efforts were meant to deceive the investing public and others about the technology, financial prospects and value of Emex. Iannazzo consented to the final judgment without admitting or denying the allegations in the Commission's amended complaint. On May 15, 2006, the United States District Court for the Southern District of New York entered a final judgment imposing a permanent injunction and an officer and director bar against Stanson, and required him to pay disgorgement of $5,000, plus pre-judgment interest thereon, and a $95,000 civil penalty.
On November 19, 2004, in a separate administrative proceeding, the Commission revoked the registration of Emex's securities pursuant to Section 12(j) of the Exchange Act.