Washington, D.C., February 25, 1999 – Continuing its nationwide sweep targeting Internet fraud, the Securities and Exchange Commission today announced four enforcement actions against 13 individuals and companies across the country, including one current and two former stock brokers, for committing fraud over the Internet and deceiving investors around the world. The filing of these cases follows the SEC's October 28, 1998 Internet Sweep, the first orchestrated nationwide operation by the SEC to combat Internet fraud.
These new sweep cases involve a range of illicit Internet conduct including fraudulent spams (Internet junk mail), online newsletters, message board postings and websites. The allegations include violations of the anti- fraud provisions and the anti-touting provisions of the federal securities laws. The authors of the spams, online newsletters, message board postings and Web sites unlawfully touted more than 56 public companies, by either making misrepresentations about the companies or failing to disclose adequately the nature, source and amount of compensation paid by the touted company. The alleged
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