STOCK PROMOTER SENTENCED AND EIGHT OTHERS CHARGED IN INTERNATIONAL STOCKBROKER BRIBERY SCHEMES

MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, and MARK J. MERSHON, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that PHILIP WONG, a Canadian-based stock promoter who pleaded guilty earlier this year to conspiring to commit securities fraud and securities fraud, was sentenced to 21 months in prison by the Honorable COLLEEN McMAHON of Manhattan federal court. Mr. GARCIA and Mr. MERSHON also announced the unsealing on Tuesday, October 21, 2008, of an Indictment in Manhattan federal court charging WILLIAM CURTIS with conspiring to commit securities fraud and to commit commercial bribery as well as substantive securities fraud in connection with a separate stockbroker bribery scheme. WONG’s sentencing and the Indictment against CURTIS follow the filing in September 2008 in Manhattan federal court of four criminal Complaints charging seven other individuals with conspiring to commit securities fraud and commercial bribery.

The charges against WONG, CURTIS and the seven other defendants are the result of a wide-ranging FBI undercover investigation of related stockbroker bribery schemes involving US-based, Canadian-based and Costa Rican-based stock promoters and stockholders. The four criminal Complaints unsealed in September 2008 charged JONATHAN CURSHEN and BRUCE GROSSMAN of a Costa Rica-based company, GLENN GROSSMAN, STEVEN COHEN and SHAY KEREN, a/k/a “David Schmidt,” principals of Manhattan-based Onyx Consulting Group, JOHN ZANIC, a Canadian-based stock promoter, and JASON JADIDIAN, a Queens, New York-based stock promoter, with conspiring to commit securities fraud and commercial bribery. All seven individuals were arrested in September 2008.

PHILIP WONG SENTENCING

According to documents filed in WONG’s cases and statements made during the guilty plea and sentencing proceedings: WONG previously pleaded guilty in July 2008 to conspiracy and securities fraud charges filed in an Indictment and an Information. The charges in the Indictment and the Information arose out of separate schemes in 2002, 2006, and 2007, to pay secret cash bribes to stockbrokers in order to induce them to cause their retail customers to buy and hold stock in the following companies: SecureWare, Inc. (“SecureWare”) in 2002, eNotes Systems, Inc. (“eNotes”) in 2006, and Jake’s Trucking International, Inc. (“Jake’s Trucking”) in 2007. With each of these bribery schemes, confidential informants (“CI”s) working at the direction of the FBI posed as corrupt stockbrokers. The CIs had a series of recorded conversations with WONG about an agreement to accept secret cash bribes that would be paid by WONG in exchange for the stock purchases. Pursuant to those agreements, in July 2002, WONG transferred $4,200 in secret cash bribes into an undercover FBI bank account in exchange for the sale of approximately $10,000 worth of SecureWare stock. In 2006, among other things, WONG caused the transfer of approximately $13,585 worth of secret cash bribes to an undercover FBI bank account in exchange for the total sale of approximately $69,700 worth of eNotes stock, and a later bribe of $10,000 for the sale of an additional $100,000 worth of eNotes stock. In addition, in 2007 WONG caused the transfer to an undercover FBI bank account of approximately $10,000 as a cash bribe for a CI’s purchase of approximately $34,980 worth of Jake’s Trucking stock into the CI’s “customer” accounts.

In addition to his prison term, Judge McMAHON sentenced WONG to two years of supervised release and criminal forfeiture of $197,710. During today’s sentencing, Judge McMAHON described WONG’s stockbroker bribery schemes as a “very serious crime” that impacted the integrity of the financial markets. WONG has been in federal custody since his February 11, 2008 arrest.

WILLIAM CURTIS INDICTMENT

According to the Indictment against CURTIS unsealed this week, over a three-month period from July through September 2007, CURTIS agreed to pay secret, cash bribes to a CI. The CI posed as a financial advisor who, in exchange for the bribes, would convince “investors” to purchase common stock of G&S Minerals, Inc. (“G&S”) that CURTIS and his co-conspirators controlled. In recorded conversations, CURTIS specifically agreed that the cash bribes would not be disclosed to the CI’s “investors,” and that the amount of the bribe would be 30 percent of the purchase orders placed by the CI’s retail customers for G&S stock. In September 2007, according to the Indictment, after purporting to sell to retail customer clients a total of over $63,000 worth of shares of G&S common stock that CURTIS had provided, the FBI received from CURTIS two cash kickbacks totaling approximately $19,000, which represented approximately 30 percent of the value of the G&S stock purchased by the CI from CURTIS.

JASON JADIDIAN COMPLAINT

According to a criminal Complaint filed on September 16, 2008, JADIDIAN, who was arrested on September 18, 2008, agreed to pay a secret, cash bribe to stockbrokers and an FBI agent acting in an undercover capacity (the “UC”) in order to convince them to buy, on behalf of retail customers, Tecton Corp. (“Tecton”) common stock that JADIDIAN was promoting. The UC posed as another promoter who, in exchange for the bribe, would recruit stockbrokers who held accounts on behalf of their retail customers, and with whom the UC would share the bribe. In July 2008, after the UC purported to have induced retail customer clients to buy approximately 80,000 shares of Tecton common stock that JADIDIAN had provided, JADIDIAN transferred from an account in British Columbia, Canada, a secret cash bribe of $5,000 to an undercover FBI account in New York City. The amount of the bribe represented approximately 27 percent of the value of the Tecton stock sold.

JONATHAN CURSHEN & BRUCE GROSSMAN COMPLAINT

According to the criminal Complaint that was filed on September 4, 2008, CURSHEN and BRUCE GROSSMAN schemed to defraud investors in Industrial Biotechnology Corporation (“IBC”) common stock by paying secret cash kickbacks to the UC, who was posing as a middleman willing to recruit corrupt stockbrokers. As part of the sting operation, in a series of recorded conversations, CURSHEN and BRUCE GROSSMAN agreed with a middleman, an FBI agent acting in an undercover capacity (the “UC”), that the UC would recruit corrupt stockbrokers at brokerage firms who were prepared to buy IBC stock from CURSHEN and BRUCE GROSSMAN and sell that stock to the brokerage firms’ retail brokerage clients in the United States. The FBI eventually purchased about $76,000 of IBC stock from CURSHEN and BRUCE GROSSMAN. In return, CURSHEN and BRUCE GROSSMAN agreed to, and eventually did, wire secret cash payments to the UC and the stockbrokers totaling approximately $19,000, or 25 percent of the value of the IBC stock they believed had been sold to retail customers.

GLENN GROSSMAN, STEVE COHEN, SHAY KEREN & JOHN ZANIC COMPLAINTS

The criminal Complaints filed in September 2008 against GLENN GROSSMAN, COHEN, KEREN and ZANIC charge them with scheming from March through September 2008 to defraud investors in Guyana Gold Corporation (“Guyana Gold”) by paying secret cash bribes to an FBI agent acting in an undercover capacity as a middleman, (the “UC”). According to those Complaints, as part of the sting operation, the UC agreed to recruit stockbrokers who were prepared to buy Guyana Gold common stock from GLENN GROSSMAN, COHEN, and KEREN and sell that stock to the brokerage firm’s retail brokerage customers in return for secret cash payments to the stockbrokers totaling approximately 23 percent of the value of the stock sold to those customers, while the UC received seven percent of the value of the stock sold. As part of the scheme, from May through August 2008, GROSSMAN, COHEN, KEREN and ZANIC paid the UC and the “stockbrokers” whom the UC had purportedly recruited bribes totaling approximately $21,800. The bribes represented 30 percent of the nearly $75,000 worth of Guyana Gold stock the UC’s “stockbrokers” had purchased in trades using an undercover FBI account. In September 2008, ZANIC transferred $100,000 to the same undercover FBI account as a cash bribe to induce the UC and the UC’s stockbrokers to purchase additional Guyana Gold stock.

WONG, 48, is a resident of Vancouver, British Columbia, Canada.

CURTIS, 49, is a resident of Naperville, Illinois. He surrendered to the FBI yesterday in Los Angeles, California. CURTIS is out on bail and his case is assigned to United States District Judge GERARD E. LYNCH.

JADIDIAN, 24, is a resident of Queens, New York. He is out on bail and his case is pending.

CURSHEN, 43, is a resident of Sarasota, Florida and Costa Rica.

BRUCE GROSSMAN, 50, is a resident of Maitland, Florida. They are both out on bail and their case is pending. GLENN GROSSMAN, 33, and COHEN, 35, are residents of Long Island, New York. KEREN, 38, who is also known as David Schmidt, is a resident of New City, New York. They are all out on bail and their case is pending.

ZANIC, 48, is a resident of British Columbia, Canada. His is currently detained and his case is pending. If convicted of the charge contained in the Complaints,

JADIDIAN, CURSHEN, BRUCE GROSSMAN, GLENN GROSSMAN, COHEN, KEREN and ZANIC each face a maximum sentence of 5 years in prison, as well as a maximum fine of $250,000. If convicted of the charges contained in the Indictment against him, CURTIS faces a total maximum sentence of 25 years in prison.

Mr. GARCIA praised the work of the FBI, the Vancouver Integrated Market Enforcement Team of the Royal Canadian Mounted Police, and the United States Securities and Exchange Commission for their assistance in this investigation.

Assistant United States Attorneys ALEXANDER J. WILLSCHER, VIRGINIA CHAVEZ ROMANO, WILLIAM J. STELLMACH, LISA BARONI and RAY LOHIER are in charge of the prosecution.

The charges contained in the Indictment and the criminal Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.