U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19562 / February 10, 2006

SEC v. George A. Todt, et al., U.S. District Court for the Central District of California, Civil Action 05-3697 PA, filed May 18, 2005

Final Judgments Entered Against the Three Remaining Defendants in SEC v. George A. Todt, et al.

On February 8, the U.S. District Court for the Central District of California entered final judgments against Jeffrey H. Evans (Evans), Ray J. Slaback (Slaback) and PTFS, LLC (PTFS), three defendants named in SEC v. George A. Todt, et al., filed on May 18, 2005. The final judgment entered against Evans: (1) permanently enjoins him from violating Sections 5(a) and 5(c) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 promulgated thereunder; (2) permanently bars him from participating in any offering of penny stock; and (3) orders him to pay disgorgement plus prejudgment interest of $49,354.77 and a $50,000 civil penalty. The final judgment entered against Slaback: (1) permanently enjoins him from violating Sections 5(a) and 5(c) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder; (2) permanently bars him from participating in any offering of penny stock; and (3) orders him to pay disgorgement plus prejudgment interest of $157,034.25 and a $200,000 civil penalty. The final judgment entered against PTFS permanently enjoins PTFS from violating Sections 5(a) and 5(c) of the Securities Act and orders PTFS to pay a civil penalty of $35,000. Evans, Slaback and PTFS consented, without admitting or denying the allegations of the Complaint, to the entry of the final judgments.

Previously, on November 18, 2005, the Court entered a final Judgment by default against the other nine defendants named in the Complaint, including George A. Todt (Todt). The default Judgment: (1) enjoined Todt, Sutra Management Corporation (Sutra Management), PageOne Business Productions, LLC (PageOne), Tempo Financial, Inc. (Tempo), STB Chip Corporation (STB Chip), SutraTel Kiosk Corporation, formerly known as Urban Transfer Systems, Inc. (SutraTel/Urban), Lonisson Communications Corporation (Lonisson) and Jetco, LLC (Jetco) from violating Sections 5(a) and 5(c) of the Securities Act; (2) enjoined Todt, Sutra Management, Sutra Group, LLC (Sutra Group), Tempo, STB Chip, SutraTel, Lonisson and Jetco from violating Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder; (3) permanently barred Todt, Sutra Management, Sutra Group, Jetco and PageOne from participating in any offering of penny stock; (4) ordered disgorgement of $538,471.16 against Todt and Sutra Management, jointly and severally; (5) ordered disgorgement of $668,926.86 against Todt, Sutra Management, Tempo, STB Chip, SutraTel/Urban and Lonisson, jointly and severally; (6) ordered disgorgement of $49,162.83 against Jetco; and (7) ordered Todt to pay a civil penalty in the amount of $130,000. The Court also froze the assets of Todt, Sutra Management, Sutra Group, Tempo and Jetco for a period of 120 days from the date of the default Judgment.

The Commission's Complaint alleged that Todt orchestrated two fraudulent schemes. One scheme involved artificially inflating the price of the securities of Quality of Life Health Corporation through the dissemination of false and misleading information about the company. The second scheme involved the issuance of unregistered securities of four penny stock companies: defendants Tempo Financial, Inc., STB Chip Corporation, SutraTel Kiosk Corporation and Lonisson Communications Corp. The second scheme also involved the dissemination of false and misleading information about the companies and the market manipulation of the stock of three of the companies. On March 28, 2005, the Commission entered orders suspending trading in the four penny stock companies' securities for a ten-day period.

http://www.sec.gov/litigation/litreleases/lr19562.htm