The Securities and Exchange Commission

[Stock]

SEC v. Raymond Burghard and eSafetyWorld, Inc. (n/k/a EZ Auctions and Shipping Inc.), Civil Action No. CV-05-5851 (Eastern District of New York) (Judge Hurley)

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20045 / March 16, 2007

Raymond Burghard Enjoined and Order to Pay Penalty, Default Judgment Ordered Against eSafetyworld, Inc. (n/k/a EZ Auctions and Shipping Inc.)

The United States Securities and Exchange Commission announced that the Honorable Denis R. Hurley, United States District Judge for the Eastern District of New York, entered final judgment as to defendant Raymond Burghard, a former stock broker and Managing Director of Harbor Ridge Communications, Inc., on May 18, 2006. Burghard, without admitting or denying the allegations of the Commission's complaint, consented to the entry of the judgment, which enjoins him from aiding and abetting violations of the antifraud, reporting, and recordkeeping provisions of the Securities Exchange Act of 1934 ("Exchange Act"). The judgment also orders Burghard to pay a civil penalty of $25,000.

The Commission commenced this action against Burghard on December 15, 2005, and filed its First Amended Complaint on February 22, 2006, alleging that Burghard aided and abetted financial fraud at eSafetyworld by signing a false loan agreement and a false loan confirmation that he knew would be provided to eSafetyworld's auditors. In so doing, the Commission alleged that Burghard aided and abetted violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13a-1, 13b2-1 and 13b2-2 thereunder.

By a separate order, dated January 4, 2007, the Court issued a default judgment against eSafetyworld, enjoining eSafetyworld from violations of the antifraud, reporting, and recordkeeping provisions of the Exchange Act. The Commission's First Amended Complaint alleged that eSafety engaged in fraudulent schemes in 2001 involving financial fraud, false statements to eSafetyworld's auditors, issuance of a false press release, and market manipulation. The First Amended Complaint alleged that eSafetyworld violated Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 (the "Exchange Act"), Rules 10b-5, 13a-1, 13a-13, 13b2-1, 12b-20, and 12b-25 thereunder, and Section 232.302 of Regulation S-T.

These judgments conclude this litigation.

For more information, see Litigation Release 19494, and Administrative Releases 34-53418, 34-53330, 34-53087, and 34-52959.

http://www.sec.gov/litigation/litreleases/2007/lr20045.htm