U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19138 / March 16, 2005
Accounting and Auditing Enforcement
Release No. 2213 / March 16, 2005
Securities and Exchange Commission v. Soulfood Concepts, Inc. and Markova Campbell, No. 04-CV-1731 (JR) (D.D.C.)
SEC SETTLES FRAUD CHARGES WITH SOULFOOD CONCEPTS, INC. AND MARKOVA CAMPBELL
The Securities and Exchange Commission today announced that the Honorable James Robertson of the United States District Court for the District of Columbia has entered final judgments against Soulfood Concepts, Inc. and its President and Chief Executive Officer, Markova Campbell. The judgments permanently enjoin Campbell from violating Section 10(b) of the Exchange Act and Rules 10b-5 and 13a-14 thereunder and from aiding and abetting violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder, and permanently enjoin Soulfood from violating Sections 10(b) and 13(a) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder. In addition, Campbell was permanently barred from serving as an officer or director of any public company. Based on Campbell's sworn financial statement, no civil penalty was imposed. Campbell and Soulfood consented to the final judgments without admitting or denying the allegations in the Commission's complaint.
In the complaint, filed October 12, 2004, the Commission alleged that Soulfood filed with the Commission a materially false and misleading annual report and amended annual report for the year ended December 31, 2002, and materially false and misleading quarterly reports for the quarters ended September 30, 2002, and March 31, 2003. The Commission also alleged that Campbell copied the financial statements included in the reports from prior Commission filings and altered the applicable dates to make the statements appear to be current. Campbell also was alleged to have included a fictitious independent auditor's report in the annual report and amended annual report.
On November 22, 2004, the Commission revoked the registration of Soulfood's securities pursuant to Section 12(j) of the Exchange Act as a result of separate administrative proceedings.