The Securities and Exchange Commission filed two separate market manipulation enforcement cases: one filed involving Homeland Safety International Inc. and the other filed involving three issuers-National Storm Management Group Inc.; Deep Rock Oil and Gas Inc.; and Global Beverages Solutions. The companies traded over the counter under the symbols SNFX (now HSFI), NLST, DPRK and GBVS, respectively. Mark B. Lindberg, 40, of Coppell, Texas, was charged in both cases and has settled them without admitting or denying the allegations in the two complaints. In the Sniffex complaint, the Commission also named Sniffex; its President Paul B. Johnson, 60, of Colleyville, Texas; Petar D. Mihaylov, 28, of Pazardjik, Bulgaria; Yuri P. Markov, 50, of Sofia, Bulgaria; Nicholas V. Klausgaard, 22 of Denmark; and Ilona V. Klausgaard, 49, of Denmark as defendants. Allegations in the Sniffex Complaint: The Commission's complaint filed in the Northern District of Texas alleges that from October 2004 through April 2006, defendants Mihaylov and Markov acquired control of Sniffex-and carried out a $32 million pump-and-dump fraud scheme in concert with the other defendants. They acquired Sniffex in 2004 as a shell company from defendant Lindberg who agreed to provide them 15 million shares of so-called free-trading stock. To do this, Lindberg, Mihaylov, Markov, and Johnson, Sniffex's President, participated in a sham SEC Rule 504 stock offering that ultimately resulted in scheme participants obtaining virtually all of the company's purportedly free-trading stock. The Commission's complaint charges Sniffex, Lindberg, Mihaylov, Markov, and Johnson with violations of the securities-registration provisions and the anti-fraud provisions of the federal securities laws, specifically Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and charges the Klausgaards with violations of the securities-registration provisions, Sections 5(a) and 5(c) of the Securities Act. The Commission seeks the following relief from Mihaylov, Markov, Johnson, and the Klausgaards: permanent injunctions against future violations of the federal securities laws, disgorgement plus prejudgment interest, civil monetary penalties, penny-stock bars, and accountings. Lindberg, without admitting or denying any allegations in the complaint, has agreed to a permanent injunction, an officer-and-director bar, and a penny-stock bar. Allegations in the National Storm, Deep Rock, and Global Beverage Complaint: The Commission's complaint filed in the Northern District of Oklahoma alleges that defendant Lindberg and other members of a Shell Creation Group manipulated at least three penny stocks from 2004 through 2006, including NLST, DPRK, and GBVS. Lindberg and the other members of the SCG, including attorneys, stock promoters, and financiers, worked together to acquire unrestricted shares of the three issuers and to profit by selling these shares into the market while manipulating the price of the stock by means of distributing promotional materials and coordinated trading. The SCG reaped profits in excess of $20 million from the sale of NLST, DPRK, and GBVS stock, and Lindberg personally reaped over $6.2 million in ill-gotten gains from this illegal conduct. The Commission's complaint charges Lindberg with violations of the securities-registration provisions and the anti-fraud provisions of the federal securities laws, specifically Sections 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act and Rule 10b-5. Lindberg, without admitting or denying any allegations in the complaint, has agreed to a permanent injunction, an officer-and-director bar, and a penny-stock bar.

Homeland Safety International Inc. announced new sales to several very important customers in the Middle East. The sales were made through AZARCO Trading and Consulting, the Company's agent in the region. The Company stated that sales were made to a Lebanese parliament member, the Lebanese Minister of Justice, and the Court of Justice.