Litigation Release No. 22425 / July 27, 2012

SEC v. Doyle Scott Elliott, Scott Elliott, Inc., Michael J. Xirinachs, Emerald Asset Advisors LLC, Robert L. Weidenbaum, and CLX & Associates, Inc., Case No. 09-cv-7594-KBF-THK (S.D.N.Y. July 24, 2012)


The Securities and Exchange Commission announced today that the United States District Court for the Southern District of New York entered an amended judgment on July 26, 2012, against defendants Michael J. Xirinachs and Emerald Asset Advisors LLC (Emerald Asset) of Melville, New York, previously finding on August 11, 2011 that they had engaged in an unregistered distribution of billions of shares of Universal Express Inc. (USXP) between February 2006 and June 2007. The judgment enjoined Xirinachs and Emerald Asset from future violations of the securities registration provisions of Section 5 of the Securities Act of 1933, ordered them jointly and severally to disgorge over $3.8 million in profits plus prejudgment interest, and pay civil penalties of $3,835,000 based on 590 unregistered transactions; ordered Xirinachs separately to disgorge over $428,000 in compensation plus prejudgment interest, and pay civil penalties of $2,119,000 based on 326 unregistered transactions; and barred Xirinachs and Emerald Asset from participating in penny stock offerings for three years, but allowed them to purchase penny stocks during that period. The other defendants were previously sanctioned on September 8, 2011. (LR-22094 Sept. 16, 2011) The complaint in this case can be reviewed at (LR-21197, Sept. 3, 2009)

The Commission previously sued Universal Express, Inc. for violating the securities registration provisions. See SEC v. Universal Express, Inc. et al, 04 Civ-02322 (GEL), (LR-18636 Mar. 24, 2004).