On December 8, 2010, the Honorable Alan S. Gold, U.S. District Judge the U.S. District Court for the Southern District of Florida (Case No. 08-61517-CIV-GOLD/MCALILEY) entered an order which, among other things, affirmed and adopted the Magistrate Judge’s September 10, 2010 report and recommendation denying the Securities and Exchange Commission’s (the “SEC”) motion seeking disgorgement of $931,000 from China Logistics Group, Inc. (the "Company"). The Judge’s order also denied the SEC’s motion for disgorgement from the Company. The SEC’s motion for disgorgement was filed in connection its September 24, 2008 complaint against Mr. V. Jeffrey Harrell, our former CEO and principal and financial accounting officer, Mr. David Aubel, previously our largest shareholder and formerly a consultant to us, and the Company based upon the alleged improper conduct of Messrs. Harrell and Aubel that occurred at various times between in or about April 2003 and September 2006 as previously disclosed in Item 1 – Legal Proceedings in our Form 10-Q filed with the SEC on November 15, 2010. A copy of the Court’s December 8, 2010 Order is attached to this Current Report on Form 8-K as Exhibit 99.1.
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