U.S. Judge Extends Assets Freeze in Comparator Case
A federal judge issued a preliminary injunction against Comparator Systems Corp., outgoing chairman Robert Reed Rogers and treasurer Gregory Armijo that prohibits fraud violations and continues a freeze on Rogers’ and Armijo’s assets.
The Securities and Exchange Commission filed fraud charges in May against Comparator, a maker of fingerprint identification systems; Rogers; Armijo, and former Executive Vice President Scott Hitt. U.S. District Judge Lourdes Baird of Los Angeles, who issued the injunction July 9 against Comparator and its two officers, had issued a similar injunction against Hitt a month ago.
The injunctions replace temporary restraining orders imposed at the time the charges were filed, and will remain in effect through the civil fraud trial, SEC enforcement official Richard Sauer said. No trial date has been set yet, he said.
Under the injunctions, Rogers is permitted to withdraw from his Bank of America account a monthly allowance of $5,415 for “necessary and reasonable living expenses.” Armijo’s monthly allowance is $3,866.
Gerald Boltz, attorney for Comparator, Rogers and Armijo, didn’t immediately respond to requests for comment. The SEC had sought the injunction, and Comparator, Rogers and Armijo agreed to the request before it was submitted to the judge for final approval.
The SEC has charged that the Newport Beach-based company stole technology from British scientists and falsely claimed a breakthrough in fingerprint identification. Comparator also concealed its negative net worth by inflating the value of its assets in an attempt to qualify for listing on the Nasdaq SmallCap Market System, the SEC alleged.
Trading in Comparator shares was suspended in May after the company broke U.S. records with a volume of more than 100 million shares on each of three consecutive days. The Nasdaq Stock Market delisted Comparator.
