SEC Announces 100 Percent Return of Funds to Defrauded Spear & Jackson Investors

FOR IMMEDIATE RELEASE
2008-121

Washington, D.C., June 25, 2008 — The Securities and Exchange Commission today announced a Fair Fund distribution totaling more than $5.6 million to 534 investors who were victims of a fraudulent pump-and-dump scheme involving the stock of tool maker Spear & Jackson, Inc.

The Fair Fund distribution represents a 100 percent return of losses to defrauded investors who bought Spear & Jackson stock during the fraudulent touting period from February 2002 through April 2004.

"The SEC's quick action enabled us to stop an ongoing fraud in its tracks and freeze significant funds that we were ultimately able to return to innocent investors," said David Nelson, Director of the SEC's Miami Regional Office. "I am particularly gratified that the action has resulted in a 100 percent return of investors' losses through this Fair Fund."

Under the Fair Fund provisions of the Sarbanes-Oxley Act of 2002, the SEC gained new authority to distribute directly to injured investors the financial penalties paid by securities law violators. The SEC already has distributed more than $3.9 billion in Fair Funds using this new authority, and earlier this year the agency created a new office to further expedite Fair Fund distributions to harmed investors.

Dick D'Anna, Director of the SEC's Office of Collections and Distributions, said, "The SEC staff is working hard to successfully achieve our goal of returning the ill-gotten gains of wrongdoers back to harmed investors as quickly as possible, and we look forward to continuing this pursuit and distributing more Fair Funds in the future."

In April 2004, the SEC charged Spear & Jackson, its then-chairman and CEO Dennis Crowley, and two stock promoters in connection with the fraudulent scheme. The complaint alleged that Crowley secretly acquired hundreds of thousands of shares of stock of Spear & Jackson and its predecessor through three nominee companies based in the British Virgin Islands that he clandestinely controlled. The complaint further alleged that Crowley then hired stock promoters to distribute false and misleading information about Spear & Jackson to the brokerage community in order to drive up the company's share price while he dumped his shares on the market.

When the SEC filed its complaint in the U.S. District Court for the Southern District of Florida, it obtained emergency relief against all parties, including an asset freeze over Crowley and the stock promoters, an order temporarily removing Crowley from his positions as chairman and CEO, and the appointment of a monitor over Spear & Jackson to oversee the company's operations.

The Commission ultimately obtained significant relief against all parties by consent. Crowley paid more than $4 million in disgorgement and prejudgment interest and a $2 million civil penalty, and the stock promoters paid a combined total of approximately $800,000 in disgorgement and civil penalties.

In a follow-up action that arose out of this same case, the Commission last year instituted public administrative proceedings against Orlando, Fla. broker-dealer Park Financial Group, Inc., and its principal, Gordon Cantley, alleging that they aided and abetted Crowley's violations of the securities laws by allowing him to buy and sell Spear & Jackson stock through the nominee companies' accounts at Park Financial. Park Financial and Cantley also were charged with failing to file Suspicious Activity Reports (SARs) in connection with Crowley's transactions, marking the first time that the Commission had brought a case against a broker-dealer for failing to file SARs.

In December 2007, the Commission issued an order by consent against Park Financial and Cantley. Without admitting or denying the SEC's allegations, Park Financial and Cantley were ordered to cease and desist committing securities law violations and to pay disgorgement and civil penalties. In addition, the Commission censured Park Financial and barred Cantley from association for a broker or dealer with the right to reapply in two years.

Questions regarding the Fair Fund distribution may be directed to the Court-appointed distribution agent, Kevin B. Love, by:

• Visiting the fund Web site at http://www.spearjacksoncelebritysettlements.com
• Calling toll-free 1-877-567-4296
• Writing to Kevin B. Love, Esq. at either Hanzman Criden & Love, P.A., 7301 SW 57th Court, Suite 515, South Miami, FL 33143 or c/o Complete Claims Solutions LLC, Claims Administrator, P.O. Box 24684, West Palm Beach, FL 33416