Exhibit (a)(iii)
SEC NEWS DIGEST
Issue 2003-25 February 6, 2003
COMMISSION ANNOUNCEMENTS
COMMISSION SUSPENDS TRADING IN THE STOCK OF INTERNATIONAL BIOCHEMICAL
INDUSTRIES, INC.
The Commission announced the temporary suspension, pursuant to Section
12(k) of the Securities Exchange Act of 1934 (Exchange Act), of trading
of the securities of International BioChemical Industries, Inc. (IBCL)
of Norcross, Georgia at 9:30 a.m. on Feb. 6, 2003, and terminating at
11:59 p.m. on Feb. 20, 2003.
The Commission temporarily suspended trading in the securities of IBCL
because of questions that have been raised about the accuracy and adequacy
of publicly disseminated information that, among other things, indicated
that the federal government had contacted IBCL to discuss the effectiveness
of the company's products in the war on bioterrorism.
The Commission cautions broker-dealers, shareholders, and prospective
purchasers that they should carefully consider the foregoing information
along with all other currently available information and any information
subsequently issued by the company.
Further, brokers and dealers should be alert to the fact that, pursuant to
Rule 15c2-11 under the Exchange Act, at the termination of the trading
suspension, no quotation may be entered unless and until they have strictly
complied with all of the provisions of the rule. If any broker or dealer
has any questions as to whether or not he has complied with the rule, he
should not enter any quotation but immediately contact the staff of the
Securities and Exchange Commission in Washington, D.C.
If any broker or dealer is uncertain as to what is required by Rule
15c2-11, he should refrain from entering quotations relating to IBCL's
securities until such time as he has familiarized himself with the rule and
is certain that all of its provisions have been met. If any broker or
dealer enters any quotation which is in violation of the rule, the
Commission will consider the need for prompt enforcement action.
If any broker-dealer or other person has any information which may relate
to this matter, the Atlanta District Office of the Securities and Exchange
Commission should be telephoned at (404) 842-7665 or 7638.
(Rel. 34-47320)
Exhibit (a)(iii)
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17971 / February 6, 2003
SEC v. International BioChemical Industries, Inc. and Timothy Moses ,
Case No. 1:03-CV-0346 (N.D.G.A. ).
SECURITES AND EXCHANGE COMMISSION SUES NORCROSS BIOTECH COMPANY AND ITS
PRESIDENT FOR FRAUD AND SUSPENDS TRADING IN COMPANY'S STOCK.
The Securities and Exchange Commission filed a complaint in the United States
District Court for the Northern District of Georgia today, February 6, 2003,
against International BioChemical Industries, Inc. ("IBCL"), a purported biotech
firm located in Norcross, Georgia, and its president, chief executive officer
and chairman of the board, Timothy C. Moses. The complaint alleges that,
beginning on January 29, 2003, IBCL issued a series of false and misleading
press releases that falsely indicated that the federal government contacted the
company to discuss the effectiveness of the company's products in the war on
bio-terrorism and created the false impression that federal government was
interested in purchasing IBCL's products. To the contrary, the Federal Bureau of
Investigation ("FBI") contacted IBCL pursuant to its inquiry into the
post-September 11, 2001 anthrax mailings. The FBI never expressed any interest
in purchasing IBCL's products. The complaint alleges that, as a result of the
false press releases, IBCL's share price and trading volume increased
dramatically.
The SEC's complaint charges IBCL and Moses with violations of Section 17(a) of
the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 thereunder. The SEC seeks a temporary restraining order,
expedited discovery, preliminary and permanent injunctions against both
defendants, as well as an order compelling disgorgement of ill-gotten gains,
along with prejudgment interest and civil penalties. In a parallel proceeding,
the SEC also suspended trading of IBCL's stock, which is traded over the counter
and quoted on the Over-the Counter Bulletin Board, based on the same factual
allegations. The National Association of Securities Dealers assisted the SEC in
this matter.
SEC Complaint in this matter
Exhibit (a)(iii)
Securities and Exchange Commission
Litigation Release No. 17991 / February 21, 2003
Norcross, Georgia Biotech Company and its President Settle Lawsuit Brought by
the Securities and Exchange Commission
SEC v. International BioChemical Industries, Inc. and Timothy Moses,
Case No. 1:03-CV-0346-JTC (N.D.G.A.).
International BioChemical Industries, Inc. ("IBCL"), a purported biotech firm
located in Norcross, Georgia, and its president and chief executive officer
Timothy C. Moses today settled the lawsuit filed by the Securities and Exchange
Commission ("Commission") in the United States District Court for the Northern
District of Georgia. The Commission's complaint in this matter alleged that,
beginning on January 29, 2003, IBCL issued a series of false and misleading
press releases that falsely indicated that the federal government contacted the
company to discuss the effectiveness of the company's products in the war on
bio-terrorism and created the false impression that federal government was
interested in purchasing IBCL's products. To the contrary, the Federal Bureau of
Investigation ("FBI") contacted IBCL pursuant to its inquiry into the
post-September 11, 2001 anthrax mailings. The FBI never expressed any interest
in purchasing IBCL's products. The complaint alleges that, as a result of the
false press releases, IBCL's share price and trading volume increased
dramatically.
As part of the settlement, the Court entered orders that permanently enjoined
IBCL and Moses from violating the antifraud provisions of the federal securities
laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The order against Mr.
Moses also directed him to disgorge $11,648.33, representing the profits he
gained as a result of the conduct alleged in the Commission's complaint plus
prejudgment interest. According to the Court's orders, the issue of civil
penalties to be paid by IBCL and Moses, if any, will be resolved at a later
date. Moses and IBCL consented to the entry of these orders without admitting or
denying the allegations in the Commission's complaint.
The National Association of Securities Dealers assisted the SEC in this matter.
Related Litigation Release No. 17971 / February 6, 2003
----------------------------