Litigation Release No. 16216 / July 22, 1999

SECURITIES AND EXCHANGE COMMISSION v. GLITTERGROVE INVESTMENTS LTD., U.S. District Court for the Southern District of New York, 99 Civ. 1153 (SHS) (SDNY)

The Securities and Exchange Commission today announced that on June 25, 1999, the Honorable Sidney H. Stein, United States District Judge, Southern District of New York, entered a Final Judgment of Default against Glittergrove Investments, Ltd., an offshore corporation. On February 17, 1999, the Commission brought an emergency civil action alleging that Glittergrove had participated in unregistered distributions of the common stock of Citron, Inc. and Electronic Transfer Associates, Inc., in violation of the registration provisions of the federal securities laws. The default judgment permanently enjoins Glittergrove from further violations of Sections 5(a) and 5(c) of the Securities Act of 1933, and orders Glittergrove to pay $2,987,710.50 in disgorgement, plus prejudgment interest.

On July 12, 1999, $2,573,943.54, representing Glittergrove funds that had been frozen in the United States by order of the Court, were paid into the Court's Registry. On July 20, the Commission filed a motion seeking the Court's approval of a Proposed Disgorgement Plan that would distribute those funds to investors who purchased shares of Citron and Electronic Transfer Associates, Inc. from Glittergrove.

See also Litigation Release No. 16064 (Feb. 18, 1999).