In early 1998, the Federal Trade Commission ("FTC") filed a lawsuit against
Tom Maher, former President of IBB, Audrey Reed, and Mr. Reed for failure to
refund money to customers and allegedly misleading investors about the
potential return on their investment. In April, 1998, Mr. Reed filed an
answer to the FTC complaint, pro se, denying all the allegations, and did not
receive any subsequent correspondence from the government.
Mr. Reed says he was unaware any case was pending against him until stories
appeared in the press and he was served with a default judgment at the
Hitsgalore.com office in Rancho Cucamonga, CA on May 11, 1999. The judgement
served on Mr. Reed informed him that a federal judge in Baltimore issued an
order in April, 1999 for he and his co-defendants to pay $613,110 to 100
customers of IBB.
After being served on May 11, 1999, Mr. Reed immediately and pro-actively
contacted the FTC through counsel regarding the matter. As of May 20, 1999,
Mr. Reed is exploring his legal options for resolving the dispute, including
the possibility of appealing or vacating the judgment.
from the 10 k filed May 26, 1999
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