Oh my there is still more on ecnc this one mentions "alleged fraudulent activities" and issuing "misleading statements".
Okay let's all guess who that sounds like. BR, what do you think?????? Hehehehehehehehe
WASHINGTON, March 24 (Reuters) - A federal court issued a temporary restraining order on Friday barring eConnect (OTC BB:ECNC.OB - news) and its chief executive from engaging in further alleged fraudulent activity, including issuing misleading statements.
The Securities and Exchange Commission filed charges on Thursday against CEO Tom Hughes and the San Pedro, Calif.-based company, which develops technology and services for e-commerce, for allegedly committing fraud by disseminating false and misleading press releases about its business opportunities.
``Hughes and eConnect consented to the temporary restraining order, which will expire after 60 days, at or before which time the court will hear the Commission's request for a preliminary injunction,' the SEC said.
A spokesman for eConnect declined to comment on the case or the restraining order issued by Judge Margaret Murrow in the U.S. District Court for the Central District of California.
The securities regulator is seeking civil penalties and a permanent injunction against Hughes and eConnect from violating securities laws in the future.
The SEC halted trading in eConnect on March 13 on the Bulletin Board citing questions about the accuracy of publicly released information. eConnect shares last traded at $10.25, down from a high of $21.88, and the halt goes through March 24.
After the halt was in place, the SEC said the company and Hughes continued to issue false and misleading statements about its business opportunities.
Specifically, the SEC accused the company of claiming it had a ``unique licensing arrangement' with Palm Inc.(NasdaqNM:PALM - news), the maker of the PalmPilot hand-held computer devices when, in reality, no such arrangement existed.
The securities regulator also accused the company of promoting a strategic alliance between one of its subsidiaries and a brokerage firm about a system that would permit cash transactions over the Internet when all that existed was a letter of intent between the brokerage firm and a joint venture partner of eConnect.
The press releases, which were also posted by the company on Internet message boards, led to a ``dramatic rise in the price of eConnect's stock from $1.39 on Feb. 28 to a high of $21.88 on March 9 on heavy trading volume,' the SEC said. |
