U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19546 / January 30, 2006
SEC v. U.S. Wind Farming, Inc., William L. Telander, et al, Case No. 05 C 4259 (N. D. Ill, filed July 25, 2005)
On January 27, 2006, the Commission filed a motion for an order requiring Defendant Raymond J. McNamee to show cause as to why he should not be adjudicated in civil contempt for violating the penny stock bars entered against him in the temporary restraining order issued on July 25, 2005 and in the preliminary injunction order issued on August 8, 2005 (collectively the Orders). The Court entered these Orders against McNamee, based on the Commission's allegations in the complaint that McNamee and entities that he controlled violated Sections 5(a) and (c) of the Securities Act of 1933 by obtaining Wind Farming unregistered shares through a purported Rule 504 offering and by selling these unregistered shares into the public market. The Commission's motion alleges that McNamee violated the Orders' penny stock bar prohibitions by participating in the offering of the penny stock of Energy Finders, Inc. (Energy Finders). The motion alleges that his participation in the Energy Finders offering was similar to the type of conduct that led to the entry of the penny stock bars entered against him in this matter. The motion further alleges that McNamee participated in the Energy Finders offering by creating the company from another public shell company, obtaining 2,403,827 Energy Finders unregistered shares through a purported Rule 504 offering, selling 403,827 of these unregistered shares into the public market for $564,738.34 from July 26, 2005 to August 26, 2005, and then re-distributing the remaining 2 million shares to other individuals and entities.
For further information, see Litigation Release No. 19311 (July 26, 2005).