Says SEC Story “Erroneous”

Responding to a Reuters story yesterday which said the Securities and Exchange Commission named in an investigation of investment fraud,, Inc.’s chairman today refuted the story’s implications.

“[The Reuters story] inaccurately portrays as the target of a
Securities and Exchange Commission investigation,” said Frank Denny,
chairman of

“The story was erroneously reported by the Bloomberg News Service, and has
since been retracted by Bloomberg. A securities firm which was a market
maker for our stock is one of the targets of the SEC action. We are
pursuing a full retraction of the Reuters story as it applies to our
Company,” said Mr. Denny.

The SEC charged Waldron & Co., a California-based brokerage firm which underwrote, with fraud. The lawsuit states that the brokerage firm and its former president, Cery B. Perle, “pumped up” the price of stock 255% from its IPO price of $9 to more than $32 per share.

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