SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15958 / October 27, 1998
S.E.C. v. The Future Superstock, Inc. and Jeffrey C. Bruss,
Docket No. 98C6772 (U.S.D.C., N.D.Ill.)
The Securities and Exchange Commission announced the
filing of a Complaint in the United States District Court
for the Northern District of Illinois, on October 27, 1998,
seeking a permanent injunction, disgorgement, civil
penalties and other relief against The Future Superstock,
Inc. ("FSS") and Jeffrey C. Bruss.
The Complaint alleges that since the spring of 1996, an
Internet newsletter called The Future Superstock, which is
published by FSS and researched and written by Bruss, has
recommended to the newsletter's more than 100,000
subscribers and to visitors to the newsletter's web site
(www.futuresuperstock..com) the purchase of approximately 25
microcap stocks which were predicted to double or triple in
the next three to twelve months. In most instances, the
prices of recommended securities increased for a short
period of time after a recommendation was made in The Future
Superstock, after which the prices of those stocks dropped
substantially. It is alleged that in making these
recommendations FSS and Bruss have violated the federal
securities laws by failing to provide adequate disclosure in
a number of significant areas: (1) for over two years
neither the newsletter nor the web site disclosed that Bruss
or FSS received compensation, in cash and stock, from nearly
every issuer profiled; (2) FSS and Bruss have failed to
disclose that in many instances they have sold stock in the
issuer shortly after the dissemination of a recommendation
in The Future Superstock caused its price to rise; (3) FSS
and Bruss have represented in the profiles that they
performed independent research and analysis in evaluating
the issuers profiled by the newsletter when, in fact,
little, if any, research was conducted in preparing the
profiles; and (4) the statements made in the profiles
regarding the success of past stock picks made in The Future
Superstock have been false and misleading.
It is alleged that by engaging in such conduct FSS and
Bruss have violated Sections 17(a) and 17(b) of the
Securities Act of 1933 and Section 10(b) of the Securities
Act of 1934 and Rule 10b-5 thereunder.
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