U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19182 / April 14, 2005

Securities and Exchange Commission v. Scorpion Technologies, Inc., Terry G. Marsh, Richard Bauer, Eric C. Brown, Dudley Mihran Freeland, J. Gordon Nevers, and Albert Terranova, Civil Action No. 96-1005 (S.D.N.Y.)

FEDERAL COURT GRANTS SUMMARY JUDGMENT, ORDERS INJUNCTIONS AND OFFICER AND DIRECTOR BARS, AND ENTERS FINAL JUDGMENT AGAINST TERRY G. MARSH AND RICHARD BAUER

The Securities and Exchange Commission ("Commission") announced today that the Honorable Barbara S. Jones, United States District Judge for the Southern District of New York, granted the Commission's motion for summary judgment and entered a final judgment against the last two remaining defendants in the action, Terry G. Marsh ("Marsh") and Richard Bauer ("Bauer"), on March 30, 2005. The court permanently enjoined Marsh from further violations of Section 17(a) of the Securities Act of 1933 ("Securities Act") and Marsh and Bauer from further violations of Section 5 of the Securities Act and Sections 10(b), 13(a), and 13(b)(2) of the Securities Exchange Act of 1934, and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13, 13b2-1, and 13b2-2, thereunder. Marsh and Bauer were also permanently barred from serving as officers or directors of a public company.

The Court found that Marsh and Bauer fraudulently sold stock to the public, falsified Scorpion's books and records, incorporated false revenues, assets and earnings into Scorpion's public filings, and provided false and misleading information to Scorpion's auditors.

The final judgment provided that the Commission's claims for disgorgement against Marsh and Bauer were satisfied by the restitution of $25,174,000 that was ordered in the criminal cases that were brought against them. U.S. v. Marsh, CR-96-0251-01 SI (N.D. Ca. May 2, 2002) and U.S. v. Bauer, CR-96-0251-03 SI (N.D. Ca. April 29, 2002). The final judgment did not order civil penalties against Marsh and Bauer in view of the substantial criminal penalties imposed on them.

Final judgments against all of the other defendants were previously entered in earlier orders of the Court.

See L.R. 14814 (February 9, 1996)

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