U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19980 / January 24, 2007
SEC v. LeeRoy Allen, Jr., Civil Action No. 1:05CV01919 (D.D.C.)
Court Orders Defendant LeeRoy Allen, Jr., Former CEO of International Biofuel and Biochemical Corporation, to Pay a Total of $269,079.22 in Disgorgement, Interest and a Civil Penalty
On January 24, 2007, the United States District Court for the District of Columbia (the "Court") entered a final judgment against LeeRoy Allen, Jr. ("Allen"), the former chairman, chief executive officer and president of International Biofuel and Biochemical Corporation ("IBBC"). The final judgment orders Allen to pay disgorgement of $122,331.00 plus prejudgment interest of $26,748.22 and a third-tier civil penalty of $120,000.
Previously, on October 24, 2006, the Court entered a judgment 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 and permanently barring Allen from participating in the offering of any penny stock. 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 this action 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 Nos. 19405 (September 29, 2005) and 19889 (October 26, 2006) and In the Matter of International Biofuel and Biochemical Corporation, Admin. Proc. File No. 34-52525 (September 29, 2005).