U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20620 / June 16, 2008
Securities and Exchange Commission v. GMC Holding Corporation and Richard Brace, Case No. 6:08-CV-00275-GKS-KRS (M. D. Fla.)
Judgment of Permanent Injunction and Other Relief Entered Agaisnt Richard Brace
The Securities and Exchange Commission announced that on April 23, 2008, the United States District Court for the Middle District of Florida entered a Judgment of Permanent Injunction and Other Relief by consent against Defendant Richard Brace. The Judgment enjoins Brace from violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The Judgment also permanently bars Brace from participating in an offering of penny stock or acting as an officer and director of any public company registered with the Commission.
The Commission commenced this action by filing its complaint on February 22, 2008, against GMC Holding Corporation and Brace, its chief executive officer, for allegedly defrauding investors by issuing false press releases touting the company's development of a motor technology device capable of generating unlimited energy and negotiations to sell this technology for hundreds of millions of dollars. The Commission's complaint further alleges that these false press releases enabled GMC and Brace to raise more than $2 million from investors through illegal unregistered offerings of the company's stock.
For additional information, see Litigation Release No. 20465 (February 25, 2008).