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part three/ UNITED STATES DISTRICT COURT/ Case 1:10-cv-23513-XXXX Document 1 Entered on FLSD Docket 09/30/2010 Page 1 of 16
SOUTHERN DISTRICT OF FLORIDA
CASE NO.
SECURITIES AND EXCHANGE COMMISSION, )
)
Plaintiff, )
v. )
)
QURI RESOURCES, INC. and )
JAIME SANTIAGO GOMEZ, )
)
Defendants. )
)

http://www.sec.gov/litigation/complaints/2010/comp21675.pdf

D. Ouri's Press Releases Materially Inflated the Market for Ouri Shares
34. The price and trading volume for Quri shares jumped dramatically in response to
several of Quri's press releases. For example, the day before the February 11, 2009 press
releases regarding drilling on the Wellington Project (Paragraphs 17-18, above), trading volume
was only 5,000 shares, with a closing price of $0.03. The day after the press releases, trading
volume increased thirteen-fold to 80,000 shares and the share price increased to an intraday high
price of $0.08, later closing at $0.06.
35. Similarly, the day before the February 23, 2009 Emerald Isle press release
(Paragraphs 21-22, above), trading volume was 135,000 shares, with an intraday high price of
$0.16, and closing at $0.15. On the day of the press release, trading peaked at more than a
million shares, with a share price reaching an intraday high price of $0.24, and closing at $0.18.
36. The market responded strongly again to the April 2009 press releases about La
Conquista (Paragraphs 27-28, above). Trading volume jumped from 15,500 shares on April 16,
2009 to 568,896 shares on April 20, 2009, with a corresponding closing price increase from
$0.05 to $0.09 and an increase in the intraday high price from $0.055 to $0.105.
E. Gomez Dumped Ouri Stock
37. Taking advantage of Quri's artificially raised stock price, Gomez sold Quri stock,
trading through G&G. Gomez appointed a friend to the board of G&G, asked the friend to open
a brokerage account in G&G's name, and provided the friend with 4 million shares of Quri stock
to deposit in the new brokerage account. From March 2009 until July 2009, G&G sold 690,000
shares of this Quri stock, in unregistered transactions, and made approximately $27,100 in
proceeds. Gomez received at least $17,500 of these sales proceeds from G&G.
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38. Gomez benefitted financially from the sale of Quri stock at prices inflated by the
false press releases he issued. For example, on April 17 and April 20, 2009, Gomez directed his
friend to sell a total of 20,000 shares of Quri stock from the G&G account at prices inflated by
the La Conquista press releases (Paragraphs 27-28, 37, above). The day before the first La
Conquista press release, Quri stock traded only 15,500 shares and its closing price was $.05.
However, on April 20, 568,896 shares were traded and the stock closed at $.09.
39. In another example, on June 22, 24 and June 25, 2009, Gomez sold, through
G&G, a total of 350,000 shares ofQuri stock at prices inflated by the online promotion of Quri's
stock beginning June 20 and by the June 23 and June 25, 2009 La Conquista press releases
(Paragraph 29, above). On the day before the online promotion and press releases began, only
1.2 million shares of Quri's stock were traded and the closing price was $.039. However, on
June 22, the stock traded 6.6 million shares and closed at $.05. On June 23, 2009, the stock
traded 2.6 million shares and closed at $.042.
F. Gomez's Stock Sales Through G&G Circumvented Registration Requirements
40. In or about September 2008, Quri's transfer agent issued G&G a certificate for 8
million shares of Quri stock. The stock was restricted and could not be freely sold. In January
2009, Gomez, as Quri's president, authorized reissuing the shares to G&G in two certificates of 4
million shares, each without a restricted legend.
41. In or about June 2008, Gomez asked a friend to open a brokerage account for
G&G. Gomez provided the friend with a resolution of G&G's board of directors appointing the
friend as Director and officer of the company and authorizing the friend to open financial
accounts on behalf of G&G. In or about January 2009, the friend opened a brokerage account at
Wachovia. Gomez provided the friend with a stock certificate for four million shares of Quri
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stock in the name of G&G, and asked the friend to deposit the shares in the newly opened
account.
42. Between March and July 2009, Gomez directed sales of 690,000 of the Quri
shares in the account. During the period he ordered the shares sold, Quri did not provide to the
public certain current public information, including the company's balance sheet, profit and loss
or retained earnings statements for the then-current and preceding two years. In addition, Gomez
did not disclose that the sales through G&G were directly or indirectly on his behalf or state the
basis, for any exemption under the federal securities laws for the sales. Finally, Gomez did not
give notice to the Commission ofhis sales.
CLAIMS FOR RELIEF
COUNT I
Quri and Gomez Violated Section 1O(b) of the
Exchange Act and Exchange Act Rule 10b-5
43. The Commission repeats and realleges Paragraphs 1 through 39 of its Complaint.
44. Quri and Gomez directly and indirectly, by use of the means or instruments of
transportation or communication in interstate commerce or by use of the mails, or of any facility
of any national securities exchange, in connection with the purchase or sale of securities, as
described herein, knowingly, willfully, or recklessly: (i) employed devices, schemes or artifices
to defraud; (ii) made untrue statements of material facts and omitted to state material facts
necessary in order to make the statements made, in the light of the circumstances under which
they were made, not misleading; and/or (iii) engaged in acts, practices and courses of business
which have operated, are now operating and will continue to operate as a fraud upon the
purchasers of such securities.
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45. By reason of the foregoing, Quri and Gomez violated and, unless enjoined, are
reasonably likely to continue to violate, Section 1O(b) of the Exchange Act, 15 U.S.c. § 78j(b),
and Rule 10b-5, 17 C.F.R. § 240.10b-5.
COUNTll
Gomez Violated Section 17(a)(l) of the Securities Act
46. The Commission repeats and realleges Paragraphs I through 39 ofits Complaint.
47. Gomez, directly and indirectly, by use of the means or instruments of
transportation or communication in interstate commerce and by use of the mails, in the offer or
sale of securities, as described in this Complaint, knowingly, willfully or recklessly employed
devices, schemes or artifices to defraud.
48. By reason of the foregoing, Gomez, directly and indirectly, violated and, unless
enjoined, is reasonably likely to continue to violate, Section 17(a)(I) of the Securities Act, 15
U.S.c. § 77q(a).
COUNT III
Gomez Violated Sections 17(a)(2) and 17(a)(3) of the Securities Act
49. The Commission repeats and realleges paragraphs I through 39 ofits Complaint.
50. Gomez, directly and indirectly, by use of the means or instruments of
transportation or communication in interstate commerce and by the use of the mails, in the offer
or sale of securities: (a) obtained money or property by means of untrue statements of material
facts and omissions to state material facts necessary to make the statements made, in the light of
the circumstances under which they were made, not misleading; or (b) engaged in transactions,
practices and courses of business which are now operating and will operate as a fraud or deceit
upon purchasers and prospective purchasers of such securities.
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