Litigation Release No. 19498 / December 19, 2005

Securities And Exchange Commission v. Gary W. Zinn, Tanika Consulting Group, Inc., and Dynamic Marketing Services EOOD, Misc. No. 1:05-mc-00511-CKK (D.D.C. December 15, 2005).

SEC Seeks to Enforce Subpoenas against California Resident and Two Entities Under His Control

On December 15, 2005, the Commission filed an application with the United States District Court for the District of Columbia for an order to enforce investigative subpoenas served on Gary W. Zinn ("Zinn"), a California resident, Tanika Consulting Group, Inc. ("Tanika"), a Nevada corporation under Zinn's control, and Dynamic Marketing Solutions EOOD ("Dynamic"), a Bulgarian entity managed by Zinn. The subpoenas sought documents and testimony from Zinn, Tanika, and Dynamic regarding, among other things, whether certain individuals and entities associated with a Shell Creation Group manipulated or attempted to manipulate the share price of certain shell companies. To date, the investigation has revealed, in part, that certain members of the Shell Creation Group assisted in the financing and promotion of several companies, including National Storm Management, Inc. ("NLST") and Deep Rock Oil & Gas, Inc. ("DPRK"). These companies, which trade on the over-the-counter market, have been the recent subjects of widespread fax blasts and spam emails touting the value of their securities in the wake of Hurricane Katrina.

The Commission's application alleges that Zinn, Tanika, and Dynamic have not complied with the subpoenas issued by the Commission. In its application, the Commission argues, among other things, that Zinn, Tanika, and Dynamic have no valid basis for their failure to comply.

This is the second subpoena enforcement proceeding arising out of this investigation. On April 8, 2005, the Commission sought to enforce subpoenas issued to J. Shrewder. See Litigation Release No. 19180 (April 12, 2005). In that matter, the Court enforced the subpoenas against Shrewder by issuing stipulated Orders.

On December 23, 2004, the Commission issued an Order suspending trading in ArTec, Inc. common stock for a period of ten days. See Securities Exchange Act of 1934 Release No. 50923 (December 23, 2004).

*Declaration in this matter