SOURCE: Western Securities Corporation

November 21, 2008 11:52 ET

Eternal Technologies Group Held in Contempt of Federal Court and Fined $10,000 a Day to Force Compliance With Court's Order, Reports Western Securities

HOUSTON, TX--(Marketwire - November 21, 2008) - Western Securities reports that Eternal Technologies Group, Inc. was held in Contempt of Court for refusing to comply with the court's order to turn over assets to pay the $961,000 Judgment imposed upon it. The company was also fined $10,000.00 per day until such time as Eternal Technologies turns over its cash and stock interests as necessary to pay the Judgment.

The $10,000 per day fine began on November 20. If Eternal Technologies does not purge itself of this contempt by the end of year, they will have accumulated a total of $410,000 in fines, not including the interest and Receiver's fees already accumulating daily on the $961,000 Judgment already levied against it.

In his motion, Peter E. Pratt, the Court appointed Receiver and Special Master of the assets of Eternal Technologies Group, Inc. stated, "The Receiver believes that the only way for this Court to send a message to Eternal Technologies that if it wants to do business in this country, it must obey the law of this country."

In the Receivers motion (Western Securities Corp. vs. Eternal Technologies Group, Inc. Civil Action No. H-05-2504), it was stated by Mr. Pratt:

1.  The total amount due this Receiver to satisfy the underlying Judgment
    is in the present sum of $961,000.00 and is increasing daily due to
    the accrual of post-judgment interest and receiver's fees.

2.  The Debtor in this Receivership, Eternal Technologies Group, Inc. has
    actual notice of this Court's Order Granting Turnover and Appointing
    Receiver.  Eternal Technologies participated actively in the hearing
    to decide whether a receiver should be appointed and vehemently
    opposed the appointment.  Following the appointment of the Receiver,
    a copy of the Receivership Order was hand delivered to Eternal
    Technologies' attorney here in Houston.

3.  The Over the Counter Bulletin Board, where Eternal Technologies is
    traded publicly, determined that the effect of the Receivership on
    Eternal Technologies was a "material event" and should be disclosed
    to the public.  OTCBB changed Eternal Technologies' ticker symbol
    from ETLT to ETLTQ to put the public on notice that Eternal
    Technologies is in Receivership.  Eternal Technologies issued a press
    release advising that it is aware of the change.

4.  The Court's loud and clear Order to Eternal Technologies was to turn
    over to the Receiver all of its cash, securities and share certificates
    to the extent necessary to satisfy the $961,000.00 Judgment.  Eternal
    Technologies did nothing.

5.  The 10KSB/A that Eternal Technologies filed October 1, 2008, indicates
    that it had approximately $12,000,000.00 in cash on hand and
    approximately $37,000,000.00 of working capital at the end of December
    2007.  The Receiver is unable to determine the present balance of
    Eternal Technologies' cash and capital reserves because Eternal
    Technologies keeps its money in Chinese banks and has failed and
    refused to provide this information to the Receiver.  Based on internet
    postings by Eternal Technologies it appears that it is more than able
    to pay the Judgment with no adverse effect on its operations or stock
    value.

6.  In addition to its cash and capital reserves Eternal Technologies
    holds and owns various securities and share certificates.  In its
    June 25, 2007 press release Eternal Technologies announced that it was
    going to repurchase as many as 2,300,000 of its issued and outstanding
    shares.  However many of the shares were repurchased by Eternal
    Technologies, those shares are treasury shares of Eternal Technologies,
    they are within the scope of the Receivership Order and must be turned
    over to the Receiver.  Eternal Technologies has failed and refused to
    turn over its treasury shares to the Receiver; it is in violation of
    the Receivership Order and is in contempt of Court.

Contact Information

  • Contact:
    Western Securities Corporation
    (504) 333-9098