U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19889 / October 26, 2006
SEC v. LeeRoy Allen, Jr., Civil Action No. 1:05CV01919 (D.D.C.)
Leeroy Allen, Jr., Former CEO of International Biofuel and Biochemical Corporation Enjoined and Permanently Barred From Acting as an Officer or Director of a Public Company and From Participating in an Offering of Any Penny Stock
The Commission today announced that on October 24, 2006, the United States District Court for the District of Columbia entered a judgment against LeeRoy Allen, Jr. ("Allen"), the former chairman, chief executive officer and president of International Biofuel and Biochemical Corporation ("IBBC") permanently enjoining Allen from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934 and Rules 10b-5 and 13a-14 thereunder; permanently barring Allen from acting as an officer or director of a public company; permanently barring Allen from participating in the offering of any penny stock; ordering Allen to pay disgorgement of ill-gotten gains, with prejudgment interest, in an amount to be determined by the Court; and ordering Allen to pay a civil penalty, in an amount to be determined by the Court. Allen consented to entry of the judgment without admitting or denying any of the allegations in the complaint.
On September 29, 2005, the Commission filed a civil injunctive action in the United States District Court for the District of Columbia, against Allen. The Complaint alleges that from December 2002, through August 30, 2004, Allen made numerous materially false and misleading statements in filings IBBC made with the Commission which created the illusion that IBBC was a viable business that would use cutting edge technology to produce, distribute and market biodiesel fuel (also known as biofuel). In reality, IBBC never produced, distributed or marketed any biofuel. As Allen knew, IBBC was nothing more than a startup company with no assets, funding or viable product. For further information, please see Litigation Release No. 19405 (September 29, 2005) and In the Matter of International Biofuel and Biochemical Corporation, Admin. Proc. File No. 34-52525 (September 29, 2005).