LITIGATION RELEASE NO. 16246 / August 5, 1999
Securities and Exchange Commission v. Golden Eagle International,
Inc. Civil Action No. 98-Z-1020 (D. Colo.)
Gregory G. Vernon Enjoined by Consent
The Securities and Exchange Commission announced that on July 16, 1999 the Honorable Zita L. Weinshienk, United States District Judge for the District of Colorado entered an order of permanent injunction against Gregory G. Vernon ("Vernon") of Denver, Colorado. The order, which was entered pursuant to Vernon's consent, in which he neither admitted nor denied the allegations of the complaint, prohibits him from further violations of the registration, anti-fraud, and filing provisions of the federal securities laws. Specifically, Vernon is enjoined from further violations of Section 10(b), of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 5(a), 5(c), 17(a), and 17(b) of the Securities Act of 1933.
The complaint charged that Vernon participated in a scheme to make fraudulent public statements about the stock of Golden Eagle International, Inc. ("Golden Eagle"). Among other things, the complaint charged that Vernon and his wholly owned company Timberline Consultants Inc. ("Timberline") distributed various publications that touted Golden Eagle stock without disclosing the fact that Vernon had received compensation from Golden Eagle. The order requires Vernon to disgorge $70,000, but waives payment of such amount and does not impose a civil penalty based on Vernon's demonstrated inability to pay such sums.
Also on July 16, 1999 the Court entered an order, pursuant to a Commission motion, dismissing with prejudice its allegations against Timberline.
The complaint in this matter was filed on May 7, 1998 and named as defendants Vernon, Golden Eagle International, Ronald Knittle, Mary Erickson, Greg Vernon and Timberline Consulting Inc. An amended complaint was filed by the Commission on November 16, 1999 naming Terry C. Turner as an additional defendant. For further information see Litigation Releases: 15733 (May 7, 1998); 15862 (8/28/98); 16079 (3/8/98); 15983 (11/19/98).