SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16289 \ September 22, 1999
Ronald A. Knittle and Mary A. Erickson Enjoined by Consent
(Civil Action No. 98-Z-1020 (D. Colo.)
The Securities and Exchange Commission announced that on September 21, 1999 the Honorable Zita L. Weinshienk, United States District Judge for the District of Colorado entered orders of permanent injunction against Ronald A. Knittle ("Knittle") and Mary A. Erickson ("Erickson") of Parker, Colorado. The orders, which were entered pursuant to the consent of Erickson and Knittle, in which they neither admitted nor denied the allegations of the complaint, prohibit them from further violations of the registration, anti-fraud, and filing provisions of the federal securities laws. The order also requires Knittle and Erickson to jointly and severally disgorge $150,000, but waives payment of such amount and does not impose a civil penalty based on their demonstrated inability to pay such sums.
The complaint charged that Knittle, former president of Golden Eagle International, Inc., ("Golden Eagle") and Erickson, his wife, and a director of Golden Eagle 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 Erickson and Knittle caused Golden Eagle to make false statements concerning the ownership and value of certain mineral properties the company claimed to own.
The Court's order enjoins Knittle from further violations of Sections 10(b), 13(b)(2)(A), 13(b)(2)(B), 13(a), and 13(d) of the Securities Exchange Act of 1934 and Rules 10b-5, 13a-1, 13a-11, 13a-13, 12b-20, and 13d-1 thereunder and Section 5(a), 5(c), and 17(a) of the Securities Act of 1933. The Court's order enjoins Erickson from further violations of Sections 10(b), 13(b)(2)(A), 13(b)(2)(B), and 13(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 13a-1, 13a-11, 13a-13, and 12b-20 thereunder and Section 5(a), 5(c), and 17(a) of the Securities Act of 1933.
The allegations in the Commission's complaint against Terry C. Turner, current president of Golden Eagle are scheduled for trial in December 1999.
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: 16246 (8/5/99); 15733 (May 7, 1998); 15862 (8/28/98); 16079 (3/8/98); 15983