QualTek Services Inc (fka QTEKQ)

[thepennyking]

Securities and Exchange Commission Inquiry On September 17, 2002,
the Company was advised by the staff of the U.S. Securities and
Exchange Commission that they will recommend that the Commission
file civil injunctive lawsuits against the Company and its
president, Thomas W. Sims. The suits would allege that the Company
violated Section 17(a) of the Securities Act of 1933 and Sections
10(b) and 13(a) of the Securities Exchange Act of 1934 and Rules
10b-5, 13a-1, and 13a-13, based on false and misleading statements
in press releases disseminated by the Company on October 22, 2001
and October 25, 2001, regarding the Company's investment in PanaMed
Corp. and the press releases disseminated on January 8, 2002 and
March 20, 2002, and failure to timely file annual and quarterly
reports with the Commission. On March 25, 2003, the Company signed,
without admitting or denying the allegations, a proposed settlement
agreement with the U.S. Securities and Exchange Commission, which
permanently restrains and enjoins the Company from engaging in acts
which would constitute violations of these regulations in the
future. On August 6, 2003, a final judgment was entered by the U.S.
District Court, Central District of California, against the Company
which permanently enjoined the Company from violating Section 10(b)
of the Exchange Act and Rule 10b-5 promulgated thereunder by using
any means or instrumentality of interstate commerce, or of the
mails, or of any national securities exchange: (A) to employ any
device, scheme or artifice to defraud; (B) to make any untrue
statement of a material fact or omitting to state a material fact
necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading; or (C) to
engage in any act, practice, or course of business which operates
or would operate as a fraud or deceit upon any person, in
connection with the purchase or sale of any security. Further, the
final judgment permanently enjoined the Company from violating
Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13


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promulgated thereunder, by failing to file with the Commission in
accordance with Commission rules and regulations, information and
documents required by the Commission to keep current information
and documents required in or with an application or registration
statement filed pursuant to Section 12 of the Exchange Act or
annual or quarterly reports as the Commission has prescribed.

http://www.sec.gov/Archives/edgar/data/1107714/000093173104000036/quintek-10qsb123103.txt