7. SEC v. Internet Solutions for Business, Inc. and Lawrence Shaw
(U.S. District Court, Southern District of Nevada
(Las Vegas Division))
In the Matter of Stuart Bockler and Imcadvisors, Inc.
(SEC Contact: Spencer C. Barasch, 817-978-6425)
The SEC alleges that Internet Solutions For Business, Inc.
(ISFB), a publicly traded Internet company located in Coventry,
England, and its founder and CEO, Lawrence Shaw, fraudulently promoted
ISFB. ISFB held itself out as a sophisticated, high-tech Internet
company with new, cutting-edge products and profitable business
relationships with established "blue chip" companies. ISFB hyped
these products and relationships on its website, in press releases and
through reports it paid to have published, all of which were
authorized by Shaw. The SEC alleges that ISFB's supposed cutting-edge
products never reached the point of commercial viability. For
example, a "$4.1 billion website audit service," repeatedly hyped by
the company, was nothing more than a concept which was never
developed. Similarly, announcements of business relationships with
"blue chip" companies were either outright lies or gross
exaggerations. Further, ISFB's stock price projections (300% increase
over the mid-term) were without any reasonable basis and were made at
a time during which the company was in a precarious financial
position. Notwithstanding dire financial problems, ISFB's stock price
and trading volume substantially increased contemporaneously with the
company's fraudulent promotional activities. The SEC seeks permanent
injunctions against future violations of the antifraud provisions of
the federal securities laws, against ISFB and Shaw. The SEC also
seeks a civil monetary penalty against Shaw. In a related matter, the
SEC found that Imcadvisors, a New Jersey corporation, and its owner,
Stuart Bockler, violated the anti-touting provisions of the Securities
Act of 1933 in the promotion of ISFB stock. Without admitting or
denying the SEC's findings, Imcadvisors and Bockler consented to the
entry of an order requiring them to cease and desist from committing
or causing any violation and any future violation of Section 17(b) of
the Securities Act. |
