NEW YORK, Oct. 16, 2006 (PRIMEZONE) -- Digital Gas, Inc. (Pink Sheets:DIGG) announced that on Tuesday, October 10, 2006 the company was named in a civil complaint filed by the state Attorney General's Office and the New Jersey Bureau of Securities for allegations of securities fraud. Also named were Brian Smith of Spring Lake, New Jersey and William Brown of Toronto, Ontario.
Digital Gas intends to fully cooperate with the Bureau in this matter. The company believes that these allegations are without merit and will vigorously defend the interests of its shareholders.
Issues raised in the suit, include the improper issuance of unregistered stock by Smith and Brown to themselves and their associates through the creation of false documents and the creation of false press releases designed to create the impression that the company is more then a shell corporation to inflate the price and demand for the stock.
Digital Gas, Inc., Smith and Brown were banned from the following: 1. any conduct in violation of the New Jersey Uniform Securities Law; 2. selling unregistered securities; 3. acting as unregistered broker-dealers and agents; 4. employing unregistered agents; 5. destroying or concealing documents; and 6. selling or promoting the sale of securities or issuing any press releases in violation of the securities law. The Order also froze the assets of Digital Gas and Brian Smith and his wife Lynn Smith, including real property, personal property, checking and savings accounts, brokerage and trading accounts, Digital Gas stock certificates, and all other assets.
A follow-up hearing is scheduled for November 3, 2006.
Shareholders will be updated either through press releases or at the company's website www.digitalgas.com when and as advised by its attorneys.