HiEnergy Technologies Inc.

Bermuda-based investment firm Lines Overseas Management Ltd. has denied that it destroyed evidence that is being sought by the SEC for a securities fraud investigation in the United States. LOM has also refuted a claim that the SEC served three administrative subpoenas on LOM's Chairman and President, 73-year-old Donald Lines, on November 10, 2005 while he was in the United States, apparently for an emergency heart operation.

Insiders and privileged clients of investment firm Lines Overseas Management stood to profit from the alleged manipulation of a penny stock by LOM principals Scott and Brian Lines, according to a court filing by the SEC.These included directors such as Graham Collis and Susan Wilson, senior employees like CFO Malcolm Moseley; relatives of the Lines brothers, including two minors, and the manager of a local restaurant, Constanzo Di Meglio.