U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20033 / March 7, 2007
SEC v. GetAnswers, Inc., et al., Case No. 03-20048-CIV-KING (S.D. Fla.)
Consent Judgment of Permanent Injunction and Other Relief Entered Against David Nepo
The Securities and Exchange Commission announced that on March 4, 2004, the Honorable James Lawrence King, United States District Judge for the Southern District of Florida, entered a Consent Judgment of Permanent Injunction and Other Relief as to David Nepo. Nepo consented to the entry of an injunction against future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition, the Consent Judgment ordered Nepo to pay a $40,000 civil money penalty and barred him from participating in any offering of a penny stock. Nepo paid the civil money penalty in full on or about March 17, 2004.
Previously, on March 3, 2004, the Commission filed a Motion for Leave to File an Amended Complaint, in which it sought to name Nepo and others as additional defendants. The Amended Complaint alleged, in pertinent part, that: (1) Nepo was GetAnswers, Inc.'s founder and chairman of its board of directors, he directly participated in the management of GetAnswers, and he was involved in its operations at the highest levels; (2) by reason of his position at GetAnswers, Nepo had decision-making authority and controlled, or had the power to control, the business of GetAnswers; (3) Nepo reviewed or approved GetAnswers' private placement memoranda and marketing materials; and (4) Nepo regularly received GetAnswers' comptroller reports detailing the company's expenditures.