The president and managing director of Lines Overseas Management (LOM) completed a court-ordered deposition before the US Securities and Exchange Commission last month.

Scott Lines appeared before staff of the SEC at the United States Consulate in Toronto on March 27 o March 29, almost two years after the SEC served him with subpoenas for information related to trading of securities issued by Sedona Software Solutions Inc. and SHEP Technologies Inc., both of Vancouver, Canada.

Mr. Lines only consented to the deposition after the US District Court for the District of Columbia and the Bermuda Supreme Court upheld the enforcement of the subpoenas and the US court allowed his motion to resettle the case outside the US.

As a result of the resettlement, he had to bear the usual travel costs and per diem costs for two SEC lawyers.

However, the SEC has still not obtained all of the information it sought in relation to the alleged market manipulation of the two securities.

Last month, the Bermuda Supreme Court enjoined LOM and its managing director from disclosing to the SEC recordings, transcripts, summaries or excerpts of telephone conversations by Scott's brother and former LOM president Brian Lines, and or interviews undertaken by a Bermuda Monetary Authority inspector in a parallel investigation into Sedona Software Solutions.

Neither the US District Court nor the SEC have responded to a LOM court notice in which it asked for the court to clarify that it cannot be required to comply with the SEC's subpoena related to Brian Lines. LOM argued that doing so would force LOM to violate foreign law.