SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21573 / June 25, 2010

COURT ENTERS FINAL JUDGMENTS IMPOSING CIVIL PENALTIES AGAINST DEFENDANTS JOHN R. HEDGES AND BASIL J. MEECHAM

Securities and Exchange Commission v. Southwestern Medical Solutions, Inc., John R. Hedges, Richard R. Powell, and Basil J. Meecham Civil Action No. 8:08-cv-731-T26TBM (M.D. Fla.)

The Commission announced that on December 17, 2009, the United States District Court for the Middle District of Florida entered Final Judgments ordering Defendants John R. Hedges and Basil J. Meecham to pay civil penalties of $130,000 each.  On December 9, 2009, the Court also entered an order dismissing the Commission’s claim for civil penalty against Defendant Richard B. Powell.

The Court had previously entered judgments of permanent injunction and other relief, by consent, against Hedges, Meecham and Powell.

The Commission commenced this action by filing its complaint on April 16, 2008, against the Defendants.  The complaint alleged that the company through its principals issued several false and misleading press releases claiming that the Food and Drug Administration had approved its Labguard diagnostic testing device, it had received an order for several thousand units of the Labguard device, and it had pending patents and trademarks with the U.S. Patent and Trademark Office.

For additional information, see Litigation Release No. 20530 (April 17, 2008), and Release No. 20770 (October 6, 2008).

 
http://www.sec.gov/litigation/litreleases/2010/lr21573.htm

Last modified: 6/25/2010