From today's SEC Digest:
SEC SUES INTERNET HUCKSTER FOR FRAUDULENT STOCK TOUTING
The Commission today announced that it filed suit against <name deleted>, individually and doing business as Financial Solutions Web, in the Central District of California. The SEC's complaint alleges that the defendant engaged in an Internet scheme in which he fraudulently touted the stock of two issuers.
The Commission's complaint alleges <name deleted> operated a web site called Financial Solutions Web (FSW). Through this site, <name deleted> recommended that the public purchase stock in two companies traded on the NASD OTC Bulletin Board. The complaint alleges that <name deleted> made fraudulent statements about his and FSW's background, including the false claims that FSW's investment clients included the California State Teachers Retirement System and California Public Employee Retirement System retirement funds and that <name deleted> was managing over $35 million dollars in client investments. Beyond misrepresenting his background and credentials, <name deleted> failed to disclose that he was paid to tout the stock of the two issuers and, in fact, falsely denied that he was being paid to make glowing comments about the stocks. <name deleted> also used the alias SafeCents to tout the stocks on the Raging Bull and Silicon Investor bulletin boards. In response to inquiries by others on the bulletin boards, <name deleted> misrepresented the nature of his compensation agreements with the two issuers.
As a result of his alleged misconduct, the complaint charges the defendant with violating Sections 17(a) and (b) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and the Commission's Rule 10b-5. The complaint seeks permanent injunctive relief against the defendant and civil monetary penalties. [SEC V. <name deleted>, Individually and Doing Business as Financial Solutions Web, Civil Action No. SACV-00-421GLT, Eex, C.D. Calif., Southern Division] (LR-16537) |
