Sanswire Announces Settlement With Securities and Exchange Commission
KENNEDY SPACE CENTER, FL -- (MARKET WIRE) -- 12/17/10 -- Sanswire Corp. (OTCBB: SNSR), a developer of lighter-than-air unmanned aerial vehicles (UAVs) and related technologies, today announced that it has reached a settlement with the U.S. Securities and Exchange Commission (the "SEC") resolving the previously-disclosed lawsuit against GlobeTel Communications Corp. ("GlobeTel," now Sanswire), without admitting or denying the allegations in the SEC's complaint, as is consistent with standard SEC practice. The settlement relates to allegations of fraud and other wrongdoing by former management dating back to 2002.
The SEC's complaint alleged that GlobeTel engaged in actions that violated certain federal securities laws and SEC rules, including the antifraud provisions. Under the terms of the settlement, the Company is required to pay a civil penalty of $300,000. As previously disclosed, the Company placed funds to pay the civil penalty in escrow in June 2010. Further, the Company consented to a permanent injunction against future violations of such federal securities laws and SEC rules. The Company also has agreed to perform certain undertakings, including among other things retaining a Chief Financial Officer, establishing and securing board members for an independent Audit Committee of the Board of Directors, and retaining an Audit Committee Financial Expert for the Board, to enhance its disclosure controls, processes and practices. On December 16, 2010, the U.S. District Court for the Southern District of Florida was advised of the settlement and dismissed all claims against GlobeTel without prejudice.
"Sanswire is committed to the highest standards of ethics and accounting," stated Glenn Estrella, President and CEO. "A critical focus of our new management team has been to strengthen our corporate governance structure and our disclosure controls and procedures in order to maintain integrity in our financial reporting and ensure our systems and results are reliable going forward."
"This settlement is in the best interests of the Company and its shareholders as it brings a long SEC investigation and lawsuit to closure," added Michael Clark, the Company's Chairman of the Board. "We are extremely pleased to have resolved this matter and look forward to moving on to execute our current business strategy."
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