U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21635 / August 30, 2010
Securities and Exchange Commission v. PCS Edventures!.com, Inc., et al., Civil Action No. 1:10-cv-00433 (D. Idaho, filed August 26, 2010)
SEC FILES INJUNCTIVE ACTION AGAINST BOISE COMPANY AND A CURRENT AND FORMER OFFICER
The Securities and Exchange Commission announced the filing of a complaint in federal district court against PCS Edventures!.com, Inc. ("PCS"), its current CEO, Anthony A. Maher, and its former CFO, Shannon M. Stith, based on the company's issuance of false press releases and false public filings, related to a purported license agreement.
The complaint alleges that in March 2007, PCS publicly announced that it had obtained a $7.15 million contract with PCS Middle East. PCS repeated this announcement in a Form 8-K filed with the Commission. The complaint alleges that the announcement was false because it failed to disclose that the purported contract was not valid, and that payment under the purported contract was contingent on PCS Middle East first obtaining a contract and funds from the government of the Kingdom of Saudi Arabia. Neither PCS nor PCS Middle East had a contract with Saudi Arabia. PCS repeated its false claims in additional press releases and filings with the Commission. PCS did not disclose that there was no contract with Saudi Arabia for several months, during which time the false information caused the price of PCS stock to be artificially inflated.
The Commission's complaint charges PCS, Maher, and Stith with violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The complaint also alleges that PCS violated Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-11 thereunder and that Maher and Stith violated Rule 13a-14 under the Exchange Act and aided and abetted violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-11 thereunder. The complaint seeks an injunction, civil penalties, and officer-director bars.
See Also: SEC Amended Complaint