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U.S. Securities and Exchange Commission

U.S. Securities and Exchange Commission

Litigation Release No. 18651 / March 31, 2004

United States of America v. Larry Stockett, No. CR-S-03-365-LRH(LRL) (USDC D. Nevada); Securities and Exchange Commission v. Larry A. Stockett, No. CV-S-02-0607-PMP-LRL (USDC D. Nevada)

The Securities and Exchange Commission ("Commission") announced that on March 4, 2004, the United States District Court for the District of Nevada unsealed a 15 count indictment against Larry Stockett. The indictment charges Stockett with securities fraud, insterstate transportation in execution of a scheme to defraud, wire fraud, money laundering, obstruction of justice and aiding and abetting in connection with "pump and dump," loan and joint venture schemes involving Hightec, Inc. ("Hightec") a former publicly traded company of which Stockett was the sole officer and director. The alleged criminal violations were, in part, the subject of a successful enforcement action brought against Stockett by the Commission in 2002. The obstruction of justice count charges Stockett with providing false testimony during the Commission's investigation concerning Stockett's activities and with making false statements to the court during the Commission's litigation of its civil action against Stockett.

The Commission filed a civil complaint against Stockett in April 2002 alleging that he orchestrated a fraudulent scheme regarding Hightec and The S.I.N.C.L.A.R.E. Group, Inc., a second former publicly traded company he controlled, in which Stockett, among other things, issued numerous false press releases and other public statements concerning the companies and unlawfully sold his restricted shares of Hightec stock in unregistered transactions. A final judgment in the Commission's litigation was entered against Stockett on March 4, 2004, permanently enjoining him from violating numerous provisions of the Securities Act of 1933 and Securities Exchange Act of 1934, prohibiting him from acting as an officer or director of a public company, ordering disgorgement and prejudgment interest totaling $1,836,181.56, and ordering a civil penalty of $120,000.

The Commission wishes to thank the United States Attorney's Office for the District of Nevada and the Federal Bureau of Investigation for their cooperation and assistance in this matter.



Modified: 04/01/2004