U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19584 / March 1, 2006

SEC v. Carl R. Rose, Lawrence A. Clasby, et al., Civil Action No. H-04-CV-2799

The Commission announced that on February 22, 2006, the United States District Court for the Southern District of Texas entered a default judgment against Defendant Harris D. Ballow, a four-time convicted felon.

In its complaint, the Commission alleged that Ballow, along with twelve other individuals, carried out a manipulation of two stocks, EpicEdge, Inc., and EVTC, Inc. Ballow was charged with violating the antifraud provisions of the federal securities laws, the stock ownership reporting provisions, the securities registration provisions and sold restricted stock.

By order of the court, Ballow is permanently restrained and enjoined him from violating, directly or indirectly, Sections 5 and 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b), of the Securities Exchange Act of 1934 ("Exchange Act"), Rule 10b-5 thereunder, Rule 102 of Regulation M and Sections 13(d)(1) and 16(a) and Rule 16a-3 thereunder. The Court also ordered Ballow to pay disgorgement in the amount of $14,304,973.00 and a civil penalty in the amount of $14,304,973.00.

http://www.sec.gov/litigation/litreleases/lr19584.htm