World Homes Inc (fka WHME)

[YinsYangs]

THIS is even MORE INTERESTING! LOL!

http://www.sec.gov/news/digest/06-12.txt

COMPLAINT FILED AGAINST WORLD HOMES, INC., MERLE FERGUSON AND SUSAN DONOHUE

A complaint has been filed seeking permanent injunctions against World
Homes, Inc. and Merle Ferguson alleging violations of the antifraud and
securities registration provisions of the federal securities laws and
against Susan Donohue for violations of the securities registration
provisions. The complaint also seeks civil money penalties against
Ferguson.

The complaint alleges that from approximately January 2000 through
February 2001, World Homes, through the company=s President and Chief
Executive Officer, Merle Ferguson, distributed several false and
misleading press releases misrepresenting, among other things: 1) that
World Homes operated and maintained a production facility for its cement
product; 2) that World Homes possessed financing of fifteen million
dollars; and 3) that World Homes had generated over $480 million in
contracted business. It is alleged these false press releases resulted
in an increase in the price of World Homes' common stock and an increase
in the volume of shares traded. The complaint alleges this conduct
violated Section 17(a) of the Securities Act and Section 10(b) of the
Exchange Act and Rule 10b-5 thereunder.

The complaint further alleges that from on or about July 16, 1999,
through February 20, 2001, World Homes made nine filings on Form S-8,
registering 4,892,977 shares with a stated maximum value of $3,777,313.
It is alleged these shares were issued to Ferguson, Donahue and entities
controlled by them and were issued in large part not to compensate those
employees, but to raise capital for World Homes. It is further alleged
that these shares were sold into the market without registration and
that most of the proceeds remitted to World Homes, which used the funds
to finance operations. It is alleged this conduct violated Sections
5(a) and 5(c) of the Securities Act. [SEC v. World Homes, Inc., et al.,
Civil Action No. CV-S-01-658-PMP-LRL, USDC, D. Nev.] (LR-17032)

SEC OBTAINS A PERMANENT INJUNCTION AGAINST UNREGISTERED INVESTMENT ADVISER
REED SLATKIN FOR DEFRAUDING CLIENTS

The Commission announced that on June 7 it obtained a permanent
injunction against Reed E. Slatkin, an unregistered investment adviser,
located in Santa Barbara, California. Since 1985, Slatkin managed at
least $230 million for about 500 clients through purported securities
trading accounts in Switzerland. The Commission alleged that in
February 2001, Slatkin misappropriated $10 million in client funds that
he had received purportedly to invest in a money market fund and misused
the client funds to pay $6.975 million to other clients and to pay over
$24,000 in expenses. The Commission further alleged that Slatkin
defrauded as many as 500 clients through a fraudulent securities scheme.

The judgment, which was entered with the consent of the defendant,
enjoins Slatkin from future violations of the antifraud provisions of
Sections 17(a) of the Securities Act of 1933, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections
206(1) and 206(2) of the Investment Advisers Act and the investment
adviser registration provisions of Section 203(a) of the Investment
Advisers Act, with the amount of disgorgement and civil penalties to be
determined. For more information see LR-16998. [SEC v. Reed E. Slatkin,
Civil Action No. 01-04283, C.D. Cal.] (LR-17033)