FINAL JUDGEMENT ENTERED IN KICKBACK STOCK SCHEME

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

District Court Enters Final Judgment Setting a Civil Penalty in the Amount of $28,000 Against Defendant Health Sciences Group, Inc.

The Commission announced that on March 10, 2014, the United States District Court for the Southern District of Florida entered a Final Judgment setting a civil penalty in the amount of $28,000 against Defendant Health Sciences Group, Inc. ("HESG"), pursuant to Section 20(d) of the Securities Act of 1933 ("Securities Act") and Section 21(d) of the Securities Exchange Act of 1934 ("Exchange Act").

The Final Judgment follows a previous order by United States District Judge Robert N. Scola, Jr. in which the Court entered a Judgment of Permanent Injunction and Other Relief against HESG, enjoining the company from violations of Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5(a).

The Commission commenced this action by filing its Complaint on August 14, 2013, against HESG and co-defendant, Thomas Gaffney. The Complaint alleged the defendants engaged in a fraudulent scheme involving HESG's stock, illicit kickbacks, and phony agreements to mask those kickbacks. On November 20, 2013, the Court entered a Final Judgment of Permanent Injunction and Other Relief by consent against Gaffney, enjoining him from violations of Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5(a), and permanently barring him from participating in an offering of penny stock, and from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act.