SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16415 \ January 21, 2000
SECURITIES AND EXCHANGE COMMISSION v. CORPORATE RELATIONS GROUP, INC., STRATCOMM MEDIA LTD., GULF ATLANTIC PUBLISHING, INC., NEW CONCEPTS L.L.C., CJL CORPORATION, POW WOW, INC., FONDO DE ADQUISICIONES E INVERSIONES INTERNACIONALES XL, S.A., C.A. OPORTUNIDAD, S.A., AMMONIA HOLD, INC., ROBERTO E. VEITIA, JAMES W. SPRATT III, JAMES A. SKALKO, JACK R. RODRIGUEZ, JOSE ANTONIO GOMEZ CORTES, ARNOLD ZOUSMER, CHARLES J. LIDMAN and MICHAEL PARNELL
Civil Action No. 99-1222-CV-22-A (M.D. Fla., Orlando) (filed September 27, 1999)
The Securities and Exchange Commission ("Commission") announced today that, on December 28, 1999, the United States District Court for the Middle District of Florida entered Final Judgments against Ammonia Hold, Inc. ("Ammonia Hold"), a Little Rock, Arkansas company that manufactures odor-eliminating products for consumer and industrial markets, and Michael D. Parnell ("Parnell") a major Ammonia Hold shareholder and one-time president of the company.
Without admitting or denying the Commission's allegations, Ammonia Hold and Parnell consented to the entry of a judgment which permanently enjoins them from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The judgment also requires Parnell to pay a $25,000 civil penalty.
The Commission alleged that Ammonia Hold and Parnell violated the registration requirements of the Securities Act in the issuance and sale of its stock to a public relations firm known as Corporate Relations Group, Inc. ("CRG"). The Commission also charged Ammonia Hold and Parnell with fraudulently reporting the proceeds of the sale of stock to CRG, through co-defendant Fondo de Adquisiciones E Inversiones Internacionales XL, S.A. ("Fondo"), as licensing revenues. The proceeds of the stock sales should have been reported as infusions of capital in a report required to be filed with the Commission, in a press release and on the Ammonia Hold's website.
The Commission's enforcement action, which alleged a variety of federal securities laws violations, including violations of the antifraud, antitouting and registration provisions, is still pending in the Middle District of Florida. See Litigation Release No. 16294 (September 27, 1999).http://www.sec.gov/litigation/litreleases/lr16415.htm