UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 17563 / June 13, 2002
SECURITIES AND EXCHANGE COMMISSION v. LARRY A. STOCKETT, No. CV-S02-0607-PMP-LRL (USDC D. Nevada).
The Securities and Exchange Commission ("Commission") announced today that on June 11, 2002, the United States District Court for the District of Nevada entered a preliminary injunction prohibiting defendant Larry A. Stockett from engaging in fraud in connection with the purchase or sale of securities and from violating the reporting and registration provisions of the federal securities laws. The Court found that the Commission has made a sufficient and proper showing in support of its motion for a preliminary injunction by establishing a prima facie case and "a strong likelihood that the Commission will prevail at trial on the merits." The Court also found that "Stockett has failed to show good cause why a preliminary injunction should not enter."
The Commission filed its injunctive action against Stockett on April 26, 2002. The Commission's complaint alleges that between August 1999 and the present, Stockett has orchestrated fraudulent schemes regarding Hightec, Inc. ("Hightec") and The S.I.N.C.L.A.R.E. Group, Inc. ("Sinclare"), two publicly held but legally defunct corporate entities of which he is the sole officer and director. The complaint further alleges that Stockett has issued numerous false statements concerning, among other things, Stockett's disciplinary history and the legal status and current operations of Hightec and Sinclare. Moreover, the complaint alleges that Stockett sold restricted Hightec stock in unregistered transactions for total profits of approximately $583,687 during dissemination of the false statements. According to the complaint, Stockett has failed to file mandatory periodic and current reports with the Commission on behalf of Hightec and Sinclare since late 1996.
The preliminary injunction enjoins Stockett, during the pendency of this action, from violating Sections 10(b), 13(a), 13(d) and 16(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-25, 13a-1, 13a-11, 13a-13, 13d-1, 13d-2, 16a-2 and 16a-3 thereunder, and Sections 5(a) and 5(c) of the Securities Act of 1933. For additional information, see L.R. 17494 (April 29, 2002).