Litigation Release No. 19732 / June 21, 2006

SEC v. Carl R. Rose, et al., Civil Action No. H-04-CV-2799

The Commission announced that on June 19, 2006, the United States District Court for the Southern District of Texas entered a Final Judgment against Defendant George J. Cannan, Sr., based on his consent.

Cannan, Sr., without admitting or denying the allegations of the complaint, consented to an order of permanent injunction which permanently restrained and enjoined him from violating, directly or indirectly, the anti-fraud and reporting provisions of the Exchange Act as well as other provisions of the Securities laws, including, Exchange Act Sections 10(b) (and Rule 10b-5 thereunder), 13(a), 13(d)(1) (and Rules 13d-1 and 13d-2 thereunder), 15(a)(1) and 16(a) (and Rule 16a-3 thereunder) and Securities Act Sections 5 and 17(a) and Rule 101 of Regulation M under the Exchange Act. The order also bars Cannan Sr. for five years from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d). Further, the order requires Cannan, Sr., to pay a civil penalty in the amount of $75,000.

For further information see Litigation Releases 18780, 19088, 19298, 19576, 19584, 19727.