LocatePLUS Holdings Corporation Announces SEC Suit

Oct 18, 2010, 16:24 ET from LocatePLUS Holdings Corporation

BEVERLY, Mass., SANTA ANA, Calif., AUSTIN, Texas and TAMPA, Fla., Oct. 18 /PRNewswire/ -- LocatePLUS Holdings Corporation (Pink Sheets: LPHC), a business-to-business, business-to-government and business-to-consumer provider of public information via its proprietary data integration solutions announced today that on October 14, 2010 the U.S. Securities and Exchange Commission filed a civil action against the company in the United States District Court for the District of Massachusetts, Securities and Exchange Commission v. LocatePlus Holdings Corporation (10Civ11751). The Complaint alleges violations of Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-11 and 13a-13 thereunder. The complaint alleges that the Company filed financial statements for the fiscal years 2005 and 2006 which were false and misleading. The action seeks the entry of a permanent injunction prohibiting it from engaging in future violations of the cited sections and rules; disgorgement and pre-judgment interest and civil monetary penalties. The Company is in the process of reviewing the complaint and has not yet filed a formal response.

Commenting on the filing, Ron Lifton, President and CEO said: "The Company, with the full concurrence of its Board of Directors, intends vigorously to oppose this action, including the imposition by the court of fines and penalties. This action unavoidably casts a pall over the hard work and success we have had to return the company to profitability and rescue it from distress. As part of this effort,  over one year ago we voluntarily and in good faith brought to the attention of the regulatory authorities, including the SEC, information we obtained as a result of a private investigation, commissioned at our own expense,  into the activities of  former officers. The investigation was led by a retired former Senior Federal Law Enforcement Official who previously had responsibility for Corporate Fraud matters nationally. Further, the Company cooperated in good faith in the ensuing investigation of these matters by the SEC. All the activities now complained of occurred prior to 2007, well before new management and directors took office. Our Board of Directors and management team remain in place. We are committed to making our restructuring plan a success. We expect to be completely vindicated in our efforts to restore this Company to prominence in the business and its stockholders to the values they have lost."

About LocatePLUS

LocatePLUS Holdings Corporation,  and its wholly-owned subsidiaries LocatePLUS Corporation; Worldwide Information;  Entersect Corporation;  Dataphant, Inc; and Employment Screening Profiles, Inc. (d/b/a TruBackgrounds);  are providers of public information via our proprietary data integration solutions.  Worldwide Information™ sells a product that enables users to search motor vehicle and driver's license information.  Our LocatePLUS and Entersect products contain searchable, cross-referenced public information on individuals throughout the United States, including names, addresses, dates of birth, Social Security numbers, prior residences, and, in certain circumstances, real estate holdings, recorded bankruptcies, liens, judgments, drivers' license and motor vehicle information.  Dataphant provides information on virtually every land-based phone number in the United States and approximately 45% of the cell phone numbers in the United States.  Employment Screening Profiles, Inc. (d/b/a TruBackgrounds), is engaged in the business of background verification and applicant management.

For more information visit the Company's Website at http://www.locateplus.com.

LocatePLUS Contact:

Brian McHugh Tel: (978) 921-2727

SOURCE LocatePLUS Holdings Corporation



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http://www.locateplus.com