UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 18268 / August 4, 2003
SECURITIES AND EXCHANGE COMMISSION v. QUINTEK TECHNOLOGIES, INC., PANAMED CORP., AND THOMAS W. SIMS, CV-03-5513-RJICFMOx
On August 1, 2003, the Securities and Exchange Commission filed a complaint in U.S. District Court for the Central District of California against Quintek Technologies, Inc. ("Quintek"), Thomas W. Sims ("Sims"), and PanaMed Corp. ("PanaMed"). The Commission's complaint alleges that between October 2001 and March 2002, Sims, who was then the president of both companies, wrote or reviewed five press releases issued by Quintek or PanaMed as well as memoranda and other materials disseminated to investors in a private offering of PanaMed stock. The complaint further alleges that the releases and offering materials contained false and misleading statements concerning, among other things, a large order for Quintek's product, testing of PanaMed's product, and revenue projections for PanaMed. Moreover, the complaint alleges that both companies failed to timely file numerous mandatory periodic reports with the Commission and that PanaMed has failed to file its most recent annual report.
The complaint seeks to permanently enjoin all of the defendants from further violations of Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13a-1 and 13a-13 thereunder, and, additionally, to permanently enjoin Sims and PanaMed from further violations of Section 17(a) of the Securities Act of 1933 ("Securities Act").
Quintek, without admitting or denying the allegations in the Commission's complaint, has consented to an order of permanent injunction against future violations of Sections 10(b) and 13(a) of the Exchange Act and Rules 10b-5, 13a-1 and 13a-13 thereunder. Sims, without admitting or denying the allegations in the Commission's complaint, has consented to an order permanently enjoining him from future violations of the foregoing provisions, as well as Section 17(a) of the Securities Act. Sims has also consented to an order imposing a five-year officer and director bar, a five-year penny stock bar, and a $25,000 civil money penalty.