Bermuda-based investment firm Lines Overseas Management yesterday refuted any wrongdoing alleged in a recent motion filed by the US Securities and Exchange Commission (SEC) ? and vehemently denied that it had profited to the tune of $6.4 million, as claimed in the application.

On June 8, the Commission ? as the body charged with regulation of all companies listed on American stock exchanges ? accused LOM in a motion to the Court of failure ?to show cause why they should not be ordered to comply with four administrative subpoenas? served in April.

The company and its managing director Scott Lines were reportedly issued the subpoenas by the SEC on April 20 at the Miami International Airport, while Mr. Lines was said to be on a medical visit to the US for ?tests relating to a heart problem?.

The SEC?s request for information was said to relate to its investigations into possible fraud, market manipulation and reporting violations by LOM in its trading of the securities of three US-listed companies: Sedona Software Solutions, SHEP Technologies and HiEnergy Technologies.

In the matter, the SEC is investigating LOM and its principal officers ? Mr. Lines and his brother Brian Lines, who is also a LOM director ? for alleged securities fraud in the US. The SEC?s application to the court last week follows LOM?s and Mr. Lines? alleged failure to comply with any of the subpoena?s requests, including handing over documents related to the investigations, as well as an order to appear for testimony in Washington DC on May 4 and 5, 2004.

But yesterday LOM, in a Press statement, said the extent of its profit from trading in the three companies was about $500,000 over an extended period of time ? not the millions alleged by the SEC.

?LOM would like to make it clear that its principals have not made $6.4 million from illegal securities trades. They have not been involved in stock manipulation. No customers of LOM have been damaged in these matters and LOM has received no complaints or concerns from any customers,? the company said.

LOM said yesterday that it intended to fight the SEC?s motion, and that its view was that the Commission had no jurisdiction to issue the subpoenas.

See Business, Page 19