U.S. Securities and Exchange Commission
Litigation Release No. 18337 / September 10, 2003
Securities and Exchange Commission v. Online Power Supply, Inc., Larry G. Arnold and Kris M. Budinger, Civil Action No. 03-M-0121(OES) (D. Colo.)
The Securities and Exchange Commission ("Commission") announced that on August 28, 2003 the United States District Court for the District of Colorado entered a Final Judgment as to Defendant Online Power Supply, Inc. The judgment settles the Commission's claims against Online in a civil action filed on January 21, 2003. The complaint alleges that Online made false and misleading statements or omitted to state material facts to investors concerning, among other things, compensation that Online paid to registered representatives for the sale of its stock and Online's financial prospects.
Online consented, without admitting or denying any factual allegations in the complaint, to the entry of the Order which permanently restrains and enjoins Online from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a) and 13(b)(2)(A) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder.