U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20165 / June 25, 2007

SEC v. Universal Express, Inc., Richard A. Altomare, Chris G. Gunderson, Mark S. Neuhaus, George J. Sandhu, Spiga Ltd., Tarun Mendiratta, No. 1:04-cv-02322-GEL (S.D.N.Y.)

SEC Seeks Appointment of Receiver To Operate Universal Express, Inc.

The Securities and Exchange Commission announced today that on June 21, 2007, it filed a motion seeking appointment of a receiver to operate Universal Express, Inc., a Nevada corporation with offices in Boca Raton, Florida and New York City, New York. The SEC's request for relief follows a permanent injunction entered earlier this year against the company prohibiting it from future violations of the securities registration and anti-fraud provisions of the federal securities laws contained in Sections 5 and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. On February 21, 2007, the Honorable Gerard E. Lynch of the United States District Court for the Southern District of New York entered an Opinion and Order determining that Universal Express had issued over 500 million shares of common stock between April 2001 and January 2004 without filing registration statements for those transactions. Additionally, the Court found that Universal Express issued several false and misleading press releases, and ordered the company to pay over $9 million in disgorgement and an additional $9 million in civil penalties. A Final Judgment against Universal Express, Richard Altomare and Chris G. Gunderson was entered on April 2, 2007. Contrary to the provisions in the Final Judgment, the company has not paid the disgorgement and civil penalties ordered. Universal Express, Richard Altomare, and Chris Gunderson filed on June 2, 2007 a notice of appeal challenging the District Court's decision. No hearing date on the SEC's motion for appointment of a receiver has been set.

For further information on the SEC's initial complaint, see LR-18636 (March 24, 2004).

http://www.sec.gov/litigation/litreleases/2007/lr20165.htm