U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20856 / January 15, 2009

SEC v. Platforms Wireless International Corp., William C. Martin, Charles B. Nelson, Robert D. Perry, Francois M. Draper, and Victor L. Ziller, Civil Action No. 04 CV 2105 JM (AJB)(S.D.CA)

SEC Settles Fraud Charges Against Two Former Executives of Platforms Wireless International for Securities Fraud

On December 19, 2008, the Honorable Jeffrey Miller of the United States District Court for the Southern District of California issued final judgments against defendants Francois M. Draper and Robert D. Perry. Draper served as Executive Vice President, Chief Operating Officer, and Chief Technical Officer of Platforms from June 2000 through July 2001. Perry formerly served as a President of Platforms.

The final judgment against Draper permanently enjoins him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It also prohibits him for four years from acting as an officer or director of any issuer of securities registered with the Commission and bars him for four years from participating in an offering of penny stock. The Court earlier found Draper liable for disgorgement of $402,920, plus prejudgment interest, representing monies gained as a result illegal sales of stock in violation of Section 5 of the Securities Act of 1933. The Court also ordered Draper to pay a $20,000 civil penalty for violating Section 5. The final judgment order requires Draper to pay the $20,000 civil penalty and $14,000 in disgorgement but waives payment of the remainder of disgorgement and prejudgment interest based on Draper's sworn financial statement and other information submitted to the Commission.

The final judgment against Perry permanently enjoins him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The final judgment waives payment of disgorgement and prejudgment interest by Perry based on his sworn financial statement and other information submitted to the Commission.

The settlements and entry of final judgments by the Court against Draper and Perry comes after years of litigation relating to a series of false press releases discussing the Company's ARC System. The Court previously granted partial summary judgment against defendants Platforms and William C. Martin and sustained its findings against Platforms and Martin after a request for reconsideration by the defendants. Pursuant to a final judgment entered by the Court on November 3, 2008, Platforms is permanently enjoined from violating Section 5 of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Platforms is ordered to disgorge, jointly and severally with defendants Draper and Martin, $402,920 and jointly and severally with Martin $1,353,941 for amounts realized from violations of Section 5, and with prejudgment interest thereon in the amounts of $217,962 and $756,624, for a total of $620,882 and $2,110,565, respectively. The Court also ordered Platforms to pay a penalty of $125,000 for violating Section 5.

The November 3, 2008 order also permanently enjoins Martin from violating Section 5 of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The Court ordered Martin to disgorge, jointly and severally with defendants Platforms and Draper, $402,920, and, jointly and severally with defendant Platforms, $1,353,941, as amounts realized from violations of Section 5 of the Exchange Act, with prejudgment interest thereon in the amounts of $217,962 and $756,624, for a total of $620,882 and $2,110,565, respectively. The Court's order also prohibits Martin for eight years from acting as an officer or director of any issuer of securities registered with the Commission and bars him for eight years from participating in an offering of penny stock. Finally, Martin is ordered to pay a civil penalty of $50,000 for his violations of Section 5 and $20,000 for his violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

Previously, on July 30, 2007, and September 23, 2005, pursuant to consent agreements, the Court entered final judgments against defendants Charles B. Nelson and Victor L. Ziller, respectively.

For further information, see Litigation Releases No. 18939 (October 25, 2004), Litigation Release No. 19824 (September 8, 2006), and Litigation Release No. 20230 (August 8, 2007).

http://www.sec.gov/litigation/litreleases/2009/lr20856.htm