U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22536 / November 20, 2012
Securities and Exchange Commission v. Jon Latorella and James Fields, Civil Action No. 1:10-CR-1038- DPW (D. Mass November 10, 2010)
FORMER EXECUTIVE OF MASSACHUSETTS-BASED COMPANY FOUND GUILTY OF SECURITIES FRAUD
The Securities and Exchange Commission ("Commission") announced today that, on November 19, 2012, a federal jury returned a verdict of guilty against James Fields, the former CFO and CEO of Massachusetts-based LocatePlus Holdings Corporation ("LocatePlus"). The jury found Fields guilty on twenty nine criminal charges, including securities fraud, false statements to company auditors, false statements and false certifications in SEC filings, aggravated identity theft and money laundering. Sentencing is currently scheduled for February 14, 2013.
On November 10, 2010, the United States Attorney's Office for the District of Massachusetts charged Fields and former LocatePlus CEO Jon Latorella with conspiracy to commit securities fraud for their role in a scheme to fraudulently inflate revenue at LocatePlus as well as a scheme to manipulate the stock of another company. On the same date, the Commission amended a previously-filed civil injunctive action against LocatePlus arising out of the same conduct, to add both Fields and Latorella as defendants. On June 14, 2012, following a March 2012 guilty plea, Latorella was sentenced to 60 months imprisonment in the criminal case, to be followed by three years of supervised release, and the payment of restitution to be determined at a later hearing. On July 30, 2012, the Commission announced that LocatePlus agreed to settle charges it engaged in securities fraud from 2005 through 2007 by misleading investors about its funding and revenue in violation of the antifraud and reporting provisions of the federal securities laws. As part of the settlement, LocatePlus consented to an administrative order which prevents it from selling its securities in the public market. The Commission's civil injunctive action, which is still pending, has been stayed until the conclusion of the criminal case against Fields.
For further information, see Litigation Release No. 21474 (April 2, 2010); Litigation Release No. 21692 (October 14, 2010); Litigation Release No. 21735 (November 10, 2010); Litigation Release No. 21763 (December 6, 2010); Securities Exchange Act Release No. 64607 (June 6, 2011); Litigation Release 22394 (June 18, 2012); Litigation Release No. 22426 (July 30, 2012).