SEC Enforcement Action Against Vaso Active Pharmaceuticals And John Masiz CEO

ACTION AGAINST VASO ACTIVE PHARMACEUTICALS, INC. AND JOHN MASIZ

On Aug. 17, 2004, the Securities and Exchange Commission filed a settled
civil injunctive action in the United States District Court for the
District of Columbia against Vaso Active Pharmaceuticals Inc., and John
Masiz, its President, Chairman and CEO. The Commission's complaint
alleges that the defendants made material misrepresentations and
omissions in both public statements and filings with the Commission
falsely claiming FDA approval for three of the company's products which
were not, in fact, FDA approved.

Specifically, the Commission's complaint alleges that on July 3, 2003,
Vaso Active filed a Form SB-2 registration statement with the Commission
for an initial public offering. The filing was signed by John Masiz and
stated that Vaso Active's products Athlete's Relief, Osteon, and Termin8
(then called deFEET) "have received FDA approval." This statement was
repeated in amendments filed with the Commission. However, this
statement was false and misleading because none of these products had
received FDA approval.

The Commission's complaint also alleges that, in the company's 10-KSB,
filed on March 26, 2004, Vaso Active made further false and misleading
statements regarding its products. The filing states: "Athlete's
Relief, Osteon, and Termin8 are qualified under FDA OTC monographs and
have been registered as such." This statement was false and misleading
because, to the extent that these products utilize a transdermal drug
delivery system, the products did not satisfy FDA monograph
requirements. Masiz signed the attached certification, stating that
based on his knowledge, the filing contained no untrue statement of
material fact.

Without admitting or denying the allegations in the complaint, the
Defendants consented to the entry of final judgments permanently
enjoining each of them from violating Section 17(a) of the Securities
Act of 1933, Sections 10(b) and 13(a) of the Securities Exchange Act of
1934, and Rule 10b-5 and 13a-1 thereunder; and for Masiz, violation of
Rule 13a-14, the certification provision. Masiz agreed to a final
judgment barring him from acting as an officer or director of a public
company for five years and requiring him to pay an $80,000 civil
penalty. Previously, the Commission had ordered a ten-day trading
suspension in Vaso securities arising from the facts alleged in the
Complaint. [SEC v. Vaso Active Pharmaceuticals, Inc., Civil Action No.
04 CV 01395, RJL, D.D.C.] (LR-18834)