Aimsi Technologies, Inc., et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20389 / December 7, 2007

SEC v. Aimsi Technologies, Inc., et al., 05 CV 4724 (LLS) (S.D.N.Y.)

SEC Partially Settles Securities Fraud Charges Against Reginald Hall

The Commission announced today that it has partially settled its enforcement action, which involves charges of a deliberate "pump and dump" scheme to defraud investors in the stock of Aimsi Technologies, against Defendant Reginald Hall, the Chief Executive Officer of Aimsi Technologies, Inc. On December 3, 2007, the Honorable Louis L. Stanton of the U.S. District Court for the Southern District of New York entered a partial final judgment against Hall that enjoined him from violating Sections 17(a) of the Securities Act of 1933 and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment also prohibits Hall from acting as an officer or director of a public company, and requires him to pay a civil penalty, and disgorgement and prejudgment interest in an amount to be determined by the Court upon motion by the Commission. The Commission filed its action on an emergency basis on May 16, 2005, alleging that Aimsi Technologies, Inc., Hall and a group of stock promoters engaged in a deliberate "pump and dump" scheme to defraud investors, in which Defendants acquired a substantial stake in the shares of Aimsi, orchestrated a fraudulent promotional campaign to drive up the price and trading volume of Aimsi's stock, and then sold their shares at a substantial profit to the investing public after their plan succeeded. The Complaint alleges that before the Commission suspended trading in Aimsi's stock on December 15, 2004, the Defendants earned illicit trading profits of at least $3.1 million. In connection with the Commission's filing of the Complaint, it also obtained a temporary restraining order that, among other things, froze Defendants' assets. The Complaint charges violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. The litigation is pending against the remaining Defendants.