U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20639 / July 9, 2008

SECURITIES AND EXCHANGE COMMISSION v. DANIEL KAISER AND STEPHEN H. ROEBUCK

SEC v. Daniel Kaiser and Stephen H. Roebuck, Civil Action No. 2:08-CV-00888-JCM-LRL (D. Nev.)

SEC Charges Broker and Former Officer Of VMT Scientific, Inc. in "Pump-And-Dump" Scheme and Suspends Trading in VMT Scientific Stock

The Securities and Exchange Commission filed a complaint today against a registered stockbroker, and the former Chief Technology Officer of VMT Scientific, Inc., a purported medical device manufacturer in Las Vegas, NV. The complaint alleges that the two defendants pumped VMT stock by issuing false press releases about VMT and then the stockbroker sold, or dumped, over 9.5 million shares for almost $1 million.

The Commission's complaint, filed in federal district court in Las Vegas, alleges that in mid-2005, Stephen H. Roebuck and Daniel Kaiser purportedly took control of VMT, a public shell company under court custodianship, and issued 120 million shares of VMT to Roebuck. Roebuck immediately transferred the shares to offshore brokerage accounts in the Cayman Islands, Turks and Caicos, and Panama.

The complaint further alleges that between November and December 2005, Roebuck and Kaiser created a website and issued a series of press releases that falsely touted the company's financial viability and its "breakthrough" product that would help patients with peripheral vascular disease. As alleged in the complaint, the website and press releases failed to state the company was under court custodianship, had no operations or revenues, and that Roebuck's stock sales were the company's only funding. After Roebuck and Kaiser issued the press releases, Roebuck sold 9,539,350 shares, resulting in proceeds over $990,000. Roebuck transferred approximately $300,000 to the company, and Kaiser took approximately $81,491 for himself.

The complaint charges the defendants with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and that Roebuck violated Sections 5(a) and 5(c) of the Securities Act. Roebuck settled to a permanent injunction, disgorgement and a civil penalty to be determined by the court, and a permanent bar from participating in an offering of penny-stock. The Commission is seeking from Kaiser an injunction, disgorgement, civil penalty, a penny-stock bar, and a permanent officer and director bar.