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U.S. Securities and Exchange Commission


Litigation Release No. 20226 / August 6, 2007

SEC v. David E. Tether, (U.S. District Court for the Middle District of Florida, Civil Action No. 2:07-CV-488-JES-SPC (M.D. FL))

The Securities and Exchange Commission ("Commission") announced the filing on August 3, 2007 of a complaint against David E. Tether in the United States District Court for the Middle District of Florida. Until August 2004, Tether was the chief executive officer and a director of Solomon Technologies, Inc., a Florida corporation. Solomon's securities have been registered with the Commission since January 2004. The Commission's complaint alleges that in April 2004, Tether fraudulently misrepresented his beneficial ownership of Solomon stock in Solomon's amended annual report filed on Form 10-KSB/A for the year ended December 31, 2003. Specifically, the complaint alleges that Tether transferred 200,000 shares of his Solomon stock while that stock was subject to a publicly disclosed lock up agreement and that the stock was used to pay for a 47-foot catamaran. However, as alleged in the complaint, Tether failed to disclose in the Form 10-KSB/A that he had transferred his locked up stock. Additionally, the Form 10-KSB/A overstated Tether's beneficial ownership of Solomon stock by the 200,000 shares he had already transferred. Moreover, the complaint alleges that Tether failed to file timely a Statement of Changes in Beneficial Ownership of Securities on Form 4 disclosing the transfer of the shares.

Based on this conduct, the Commission alleges that Tether violated Sections 10(b), 13(g) and 16(a) of the Securities Exchange Act of 1934, and Rules 10b-5, 13a-14, 13d-1(d), 13d-2(b) and 16a-3 thereunder, and that he aided and abetted Solomon's violations of Section 13(a) of the Exchange Act and Rule 13a-1 thereunder. In its complaint, the Commission seeks a permanent injunction, disgorgement plus prejudgment interest, a civil penalty, and an officer and director bar.

SEC Complaint in this matter



Modified: 08/06/2007