U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21029 / May 8, 2009

Securities and Exchange Commission v. Courtney D. Smith, Civil Action No. 05- 0941 (CAS) (VBKx) (C.D. Cal. filed on February 7, 2005)

RE-TRIAL OF CASE AGAINST COURTNEY D. SMITH DISMISSED BY STIPULATION OF PARTIES

On March 2, 2009, based upon the stipulation of the parties, the United States District Court for the Central District of California dismissed the Securities and Exchange Commission's enforcement action against Courtney D. Smith.

The Commission's Complaint against Smith, filed on February 7, 2005, alleged that Smith had received remuneration from GenesisIntermedia, Inc. in consideration for recommending its stock to the investing public and his investment advisory clients without properly disclosing the remuneration and his business relationships with the company's chief executive officer. The complaint alleged that Smith violated the antifraud and other provisions of the federal securities laws.

The case was tried to a jury in January 2008. On January 22, 2008, the jury found Smith "not liable" on the fraud claims but failed to reach a verdict on the Commission's claim under the anti-touting provisions of Section 17(b) of the Securities Act of 1934. Retrial on the remaining claim was scheduled to begin on March 10, 2009.

http://www.sec.gov/litigation/litreleases/2009/lr21029.htm