UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16717 / September 21, 2000

SECURITIES AND EXCHANGE COMMISSION v. CORPORATE RELATIONS GROUP, INC., STRATCOMM MEDIA LTD., GULF ATLANTIC PUBLISHING, INC., NEW CONCEPTS L.L.C., CJL CORPORATION, POW WOW, INC., FONDO DE ADQUISICIONES E INVERSIONES INTERNACIONALES XL, S.A., C.A. OPORTUNIDAD, S.A., AMMONIA HOLD, INC., ROBERTO E. VEITIA, JAMES W. SPRATT III, JAMES A. SKALKO, JACK R. RODRIGUEZ, JOSE ANTONIO GOMEZ CORTES, ARNOLD ZOUSMER, CHARLES J. LIDMAN and MICHAEL PARNELL

Civil Action No. 6:99-cv-1222-Orl-28A (M.D. Fla., Orlando) (filed September 27, 1999)

The Securities and Exchange Commission ("Commission") announced today that, on August 11, 2000, the United States District Court for the Middle District of Florida entered final judgments against James A. Skalko ("Skalko") and Pow Wow, Inc. ("Pow Wow"). Without admitting or denying the Commission's allegations, Skalko consented to the entry of a judgment which permanently enjoins him from violating Sections 5(a), 5(c), 17(a) and 17(b) of the Securities Act of 1933 ("Securities Act"), Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 ("Exchange Act"), and Exchange Act Rule 10b-5. The judgment also requires Skalko to pay disgorgement and prejudgment interest in the amount of $425,000, and a civil penalty of $100,000. Additionally, without admitting or denying the Commission's allegations, Pow Wow consented to the entry of a judgment which permanently enjoins it from violating Sections 5(a) and 5(c) of the Securities Act.

The Commission alleged that Skalko, while a principal associate of Corporate Relations Group, Inc. ("CRG"), a public relations firm and co-defendant in this action, violated the antifraud, antitouting and registration provisions of the securities laws by participating in a fraudulent scheme in which CRG acquired control of large blocks of securities from small companies at a steep discount, touted the securities to the public, and then sold the securities, which were neither registered with the Commission nor exempt from registration, while promoting them. The Commission further alleged that Pow Wow, a Florida corporation for which Skalko was the president and sole director, violated the registration requirements of the Securities Act by selling the securities of CRG's clients while those securities were not registered with Commission and no exemption from registration was available.

The Commission's civil action against CRG and other defendants, which alleges a variety of federal securities laws violations, including violations of the antifraud, antitouting and registration provisions, is proceeding in the Middle District of Florida. See Litigation Release No. 16294 (September 27, 1999).

http://www.sec.gov/litigation/litreleases/lr16717.htm