U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19609 / March 16, 2006

Securities and Exchange Commission v. Patrick A. Grotto, Mark B. Leffers and Jon M. Bloodworth, Civil Action No. 05-CV-5880 (S.D.N.Y.)

Court Enters Final Judgment Against Former Busybox General Counsel Jon M. Bloodworth For IPO Fraud Scheme

The Securities and Exchange Commission today announced that on February 27, 2006, the Honorable Gerard E. Lynch, U.S. District Judge for the Southern District of New York, entered a final judgment against Jon M. Bloodworth, 47, of Sante Fe, New Mexico, the former general counsel and a director of Busybox.com, Inc. ("Busybox"). Without admitting or denying the allegations in the Commission's complaint, Bloodworth consented to the entry of the final judgment which permanently enjoins him from violating the antifraud provisions of the federal securities laws (Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act and Rule 10b 5 thereunder), orders him to pay $105,936 in disgorgement and $35,680 in prejudgment interest, and bars him from acting as an officer or director of a public company for a period of five years. In a related administrative action, Bloodworth also consented to the entry of a Commission order that suspends him from practicing before the Commission as an attorney.

According to the Commission's complaint, filed on June 24, 2005, Bloodworth and others engaged in a fraud to close Busybox's initial public offering when Busybox's underwriter failed to sell all $12.8 million of the IPO securities to bona fide investors. The complaint alleges that Bloodworth and others secretly purchased the unsold IPO securities using undisclosed payments styled as bonuses and legal fees, thus reducing the amount of money raised in the IPO by almost 20%. The Commission's action in this matter continues against the remaining two defendants, Busybox's former president, Patrick Grotto, and former CFO, Mark Leffers. (See also Lit. Rel. No. 18533, Jan. 7, 2004; Lit. Rel. No. 19150, Mar. 22, 2005; and Lit. Rel. No. 19284, June 24, 2005.)