Attorney General’s Securities Division Halts Sale of
Unregistered Securities by Company Falsely Claiming Patent of Bullet Proof Fabric

BALTIMORE, MD ( April 29, 2010) -Attorney General Douglas F. Gansler announced today that the Securities Division has issued a Summary Order to Cease and Desist against John F. Curran, III and Gargoyles, Inc. The Securities Division alleges that Curran and Gargoyles are violating the Maryland securities laws by selling unregistered securities, acting as an unregistered broker-dealer and agent, and engaging in fraud in the offer and sale of securities.

According to the order, Curran and Gargoyles held investor sales meetings at the company’s Carroll County facility and told potential investors that the company owned special patented technology, including a stab protection plate and a fabric body armor system. Curran and Gargoyles claimed that annual sales from these products would grow in one year from $3,770,809 to $72,000,000. According to the order, the company owned no patented technology. Curran and Gargoyles raised over $2.3 million from more than 299 investors mostly from Carroll and Baltimore counties. Further, after receiving the Securities Division’s subpoena, Curran stated to the Division that he would not make additional sales of Gargoyles stock. However, according to the order, on April 14, 2010, Gargoyles sent an e-mail to its shareholders soliciting names of potential investors.

“The Securities Division took this action to stop the further victimization of Maryland investors,” said Attorney General Gansler. “Curran and Gargoyles are ordered to immediately halt the fraudulent sale of Gargoyles stock in Maryland.”

Attorney General Gansler thanked the Carroll County State’s Attorney’s Office for referring the matter. The State’s Attorney’s Office is continuing to investigate the sale of unregulated securities. Individuals who purchased Gargoyles stock are encouraged to contact the Securities Division at 410-576-6407. Investors should call the Securities Division at 410-576-6360 before they invest to find out whether an investment adviser, broker or securities is registered.

A copy of the Securities Division’s Summary Order to Cease and Desist can be found at http://www.oag.state.md.us/Securities/Actions/2010/GargoylesSumm_CD_4_29_10.pdf