U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20412 / December 20, 2007

SEC v. Rhea Laws and 4D Seismic, Inc. (Civil Action No. 4:07-CV-04479, United States District Court; Southern District of Texas; Houston Division)

SEC File Securities Fraud Action Against Rhea Laws and 4D Seismic, Inc.

On December 20, 2007, the Commission filed a civil action in United States District Court in Houston, Texas against Rhea Laws, an individual residing in Sugar Land, Texas, and 4D Seismic, Inc., a Nevada corporation based in Sugar Land. The Commission's complaint alleges that 4D Seismic and Laws, the company's sole officer and board member, violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder and Sections 5(a) and 5(c) of the Securities Act of 1933 (Securities Act).

According to the complaint, in April 2006, in unregistered and non-exempt transactions, Laws caused 4D Seismic to issue two million shares of common stock to a private corporation Laws created and controlled; Laws promptly re-sold a portion of those shares into the public market. The complaint further alleges that Laws sought to maximize his profit by inflating the market for 4D Seismic's securities through issuing materially false press releases touting supposed business developments involving 4D Seismic. According to the complaint, this scheme resulted in over $550,000 in illicit proceeds. In its complaint, the Commission seeks injunctive relief and disgorgement of ill-gotten gains, plus pre-judgment interest, as to Laws and 4D Seismic and, in addition, as to Laws, a civil penalty, an officer and director bar, a penny stock bar, and the surrender of certain 4D Seismic shares under Laws's control.

SEC Complaint in this matter

http://www.sec.gov/litigation/litreleases/2007/lr20412.htm