U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19273 / June 16, 2005

SEC v. Aimsi Technologies, Inc., et al., 05 CV 4724 (LLS) (S.D.N.Y.)

COURT ENTERS PRELIMINARY INJUNCTION AGAINST FORMER CEO OF AIMSI TECHNOLOGIES AND STOCK PROMOTER DEFENDANTS, AND AN ASSET FREEZE AGAINST OFF-SHORE RELIEF DEFENDANTS

The Commission announced today that on June 13, 2005, Judge Louis L. Stanton of the Southern District of New York entered a preliminary injunction on consent against defendant Reginald Hall, the former CEO of Defendant Aimsi Technologies, Inc. ("Aimsi"), and stock promoter defendants Everett Bassie, Winfred Fields and Bruce Pollock, based on their participation in a deliberate "pump and dump" scheme to defraud investors. The Court, on May 20, 2005, had already entered a preliminary injunction on consent against Aimsi. By order dated May 16, 2005, the Court, upon the Commission's emergency application when it filed this action, entered a temporary restraining order freezing defendants' assets pending a determination of the Commission's application.

In addition, the Court on June 14 entered a preliminary injunction against fugitive stock promoter defendant Harris Ballow, and entered an asset freeze against him, and a number of off-shore Relief Defendants that the Commission has alleged were established by Ballow and other stock promoter defendants to shield their illicit trading profits from their fraudulent conduct.

The Complaint in this action alleges defendants Bassie, Fields, Pollock and Ballow, with the active cooperation of Hall, acquired a substantial stake in the shares of Aimsi, orchestrated a fraudulent promotional campaign to drive up the price and trading volume of Aimsi's stock, and then sold their shares at a substantial profit to the investing public after their plan succeeded. The Complaint alleges that before the Commission suspended trading in Aimsi's stock on December 15, 2004, the defendants earned illicit trading profits of at least $3.1 million.

The Complaint charges violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5.

The litigation is pending.

http://www.sec.gov/litigation/litreleases/lr19273.htm