Edit.........Disregard the following, I see now you have already reported this.
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Another virtual stock exchange busted.<br>
------------------------ <a href="http://www.stockgeneration.com/" target="_blank">http://www.stockgeneration.com/</a><p>
<a href="http://www.sec.gov/news/digests/07-03.txt" target="_blank">http://www.sec.gov/news/digests/07-03.txt</a><p>
COURT ENTERS PRELIMINARY INJUNCTION IN SEC ACTION TO HALT FRAUDULENT INTERNET "VIRTUAL STOCK EXCHANGE" AND CONTINUES FREEZE OF PROMOTERS' ASSETS <p>
On June 29, 2000, after a hearing, the U.S. District Court in Boston entered a Preliminary Injunction and Order for Other Relief in the SEC's case against SG Limited and SG Perfect Limited, based on allegations that SG operated a massive pyramid scheme offering investments in a "virtual company" over the Internet. The Court's order, among other things, continues the previously ordered freeze of defendants' assets. According to the Commission's complaint, SG, located in the Caribbean nation of Dominica, operates a website under the name "StockGeneration" promising investors a risk-free, guaranteed return of 10% per month, or 215% per year compounded. SG allegedly described itself as a "virtual stock exchange" offering investments in several "virtual company" stocks, including one the price of which "only rises" and which generates the guaranteed 10% monthly return. The Commission alleged that the investment program, which raised hundreds of thousands, if not millions, of dollars was actually nothing more than a pyramid scheme. The Commission further alleged that investors did not receive the guaranteed return and have not even been able to recover their initial investments. <p>
The Commission's complaint, filed on June 9, 2000, alleged that SG Limited violated the antifraud and securities registration provisions of the federal securities laws. On June 9, 2000, the U.S. District Court for the District of Massachusetts granted the Commission's motion for an ex parte order temporarily restraining the fraudulent activities, freezing the assets of SG Limited and the proceeds of the offering, requiring that the funds be returned to the U.S. under control of the Court, and imposing other equitable relief. [SEC v. SG LIMITED, d/b/a STOCKGENERATION, et al., USDC for the District of Massachusetts, C.A. No. 00 CV 11141-JLT] (LR-16616) |
