Ants Softwarecom's Stock Surge Prompts SEC Fraud Investigation
Burlingame, California, March 6 (Bloomberg) -- The Securities and Exchange Commission is investigating possible fraud involving shares of Ants Software.com Inc., which soared 64-fold in four months last year, according to an agency document.
Shares advanced from a low of 7/8 on August 12 to a high of 55 5/8 on Dec. 23, as more than 4,000 messages were posted on an Internet message board about Ants Software. Many messages on Ragingbull.com repeated the company's claims that it developed a way to significantly speed up computer data processing.
The Burlingame, California, company, which changed its name from Chopp Computer Corp. last year, has had no sales since it was founded 21 years ago. It doesn't have a commercial product.
On Jan. 7, the SEC issued a Formal Order of Investigation authorizing its enforcement division to issue subpoenas for documents relating to Ants Software and to compel testimony from witnesses.
The order came two days after Donald Hutton, the company's largest shareholder, resigned as chairman and the company withdrew a filing with the SEC that misidentified Hutton as a certified public accountant.
After touching its 55 5/8 high point, Ants plummeted to 5 1/2 in four days. The shares recently traded at 23, up 1/8.
Fred Pettit, chairman, president and chief executive, wasn't immediately available for comment.
Mar/06/2000 10:23
For more stories from Bloomberg News, click here.
(C) Copyright 2000 Bloomberg L.P. |
