11. At all times herein mentioned, each Doe Defendant was the agent, partner, joint-venturer, servant and/or employee and authorized representative of each Defendant and in doing the actions herein alleged, acted within the scope of such actual and/or apparent authority.
JURISDICTION AND VENUE
12. Jurisdiction is proper in this court pursuant to Sections 10, 15(a), and 29(b) of the Securities Exchange Act of 1934 (the “1934 Act”), 15 U.S.C. §§ 78j, 78o(a)(1), and 78cc(b), and the rules and regulations promulgated thereunder, including Securities and Exchange Commission (“SEC”), Rule 10b-5 (17 C.F.R. 240.10b-5). Jurisdiction is based upon § 27 of the 1934 Act, 15 U.S.C. § 78aa and 28 U.S.C. §§ 1331 and 1367.
13. Venue is proper in this District pursuant to Section 27 of the 1934 Act, 15 U.S.C. § 78aa, and 28 U.S.C. §§ 1391(b), because a substantial part of the acts complained of, including payment of illegal commissions and the dissemination of materially false and misleading statements, occurred in this District.
COMMON ALLEGATIONS
14. On March 18, 2006, Frank W Cole (“Cole”) was removed by the Board of Directors of Energytec as Chairman, Chief Executive Officer and Chief Financial Officer of Energytec. Mr. Cole’s removal was effective immediately.
15. On March 18, 2006, Josephine Jackson (“Jackson”) was removed by the Board of Directors of Energytec as Executive Assistant to the Chairman and Assistant Corporate Secretary of Energytec. Ms. Jackson’s removal was effective on March 22, 2006.
16. Mr. Cole and Ms. Jackson were removed after Energytec’s Board of Directors and Audit Committee discovered certain improper acts and/or omissions committed by Mr. Cole and Ms. Jackson, including, among other things, that Mr. Cole and Ms. Jackson had paid secret commissions to Defendants in violation of state and/or federal securities laws, which Mr. Cole
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