Federal Jury Finds Michael Pietrzak and Maurice Furlong Liable for Securities Fraud and Other Charges
U.S. Securities and Exchange Commission - August 03, 2007
The Securities and Exchange Commission announced today that a federal jury found Michael J. Pietrzak and Maurice W. Furlong liable for securities fraud and other charges in their operation of Hexagon Consolidated Companies of America, Inc. (HCCA), a development stage mining company headquartered in Reno, Nev.

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Washington, D.C. - The Securities and Exchange Commission announced today that a federal jury found Michael J. Pietrzak and Maurice W. Furlong liable for securities fraud and other charges in their operation of Hexagon Consolidated Companies of America, Inc. (HCCA), a development stage mining company headquartered in Reno, Nev. Pietrzak was HCCA's general counsel, CFO, and executive secretary, as well as a director. Furlong was HCCA's chairman, president and CEO.

Katherine Addleman, Regional Director of the SEC's Atlanta Regional Office, said, "We are very pleased with the jury's verdict."

The complaint alleged that Pietrzak and Furlong engaged in protracted efforts to fraudulently increase the stock price and value of the company by, among other means, filing false and misleading registration statements and periodic and current reports, and by issuing false press releases and a letter to shareholders. During the same time, Pietrzak and Furlong sold a total of more than 197 million shares of HCCA stock and fraudulently received proceeds of $1.3 million and $3.4 million, respectively. The complaint also alleged that from 1996 through 2001 HCCA, through the efforts of Pietrzak and Furlong, reported to the public that is was an entity with substantial assets when, in fact, it was virtually worthless.

A hearing has been scheduled for Sept. 24, 2007, to determine the appropriate relief against Pietrzak and Furlong, which, as requested by the SEC, may include permanent injunctions, disgorgement of the stock proceeds with interest, civil penalties, officer and director bars and penny stock bars.

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