U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18976 / November 17, 2004
Securities and Exchange Commission v. Medi-Hut Co., Inc., Joseph A. Sanpietro, Laurence M. Simon and Lawrence P. Marasco, Civil Action No. 03Civ 3921 (Jose L. Linares) D.N.J. filed August 19, 2003)
FORMER MEDI-HUT OFFICERS SENTENCED FOR SECURITIES FRAUD AND LYING TO SEC INVESTIGATORS
On November 16, 2004, the United States District Court for the District of New Jersey sentenced three top former officers of Medi-Hut Co., Inc. ("Medi-Hut"), a drug wholesaler based in New Jersey, to prison for their participation in a conspiracy to inflate the revenues and earnings of Medi-Hut and for lying to SEC investigators. Medi-Hut's former Chief Executive Officer, Joseph A. Sanpietro, was sentenced to 46 months in prison and a $50,000 fine, former Chief Financial Officer, Laurence M. Simon was sentenced to 46 months in prison and a $5,000 fine, and former Vice President of Sales, Lawrence P. Marasco, was sentenced to 42 months in prison and a $70,000 fine. All three individuals previously settled parallel civil charges filed by the SEC on August 19, 2003. For further information, see Litigation Release No. 18296 (August 19, 2003).