YET ANOTHER FRAUDULENT PROMOTER TIED TO HEMISPHERIX
"Carter, who founded his company (HEB) 30 years ago and whose only potential product remains Ampligen, recently said in an interview with WallStreetReporter.com that Ampligen could also treat Ebola."
216.239.33.100
Registrant:
Starwood Media Group, Inc. (WALLSTREETREPORTER2-DOM)
19 FULTON STREET
null
USDomain Name: WALLSTREETREPORTER.COM
Administrative Contact:
Marks, Jack (JM6135) info@STN.COM
Starwood Media Group, Inc.
594 Broadway, Suite 312
New York, NY 10012
+1 212 431 3242 (FAX) +1 212 431 1579
Technical Contact:
Support, Tech (TS6330) domreg@INTERLAND.NET
Interland, Inc.
303 Peachtree St
Atlanta, GA 30308
US
800-589-5060 404-260-8625Record expires on 16-Dec-2007.
Record created on 15-Dec-1997.
Database last updated on 10-Feb-2003 22:23:08 EST.Domain servers in listed order:A.NS.INTERLAND.NET 64.226.28.33
B.NS.INTERLAND.NET 69.0.145.33
C.NS.INTERLAND.NET 64.77.127.42
=======================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 15950 /October 27, 1998
SECURITIES AND EXCHANGE COMMISSION v. STARWOOD MEDIA GROUP,
INC., and JACK MARKS a/k/a JACOB MESTECHKIN, 98 Civ. 7659
(RO) (S.D.N.Y.)
The Commission sued a New York public-relations firm
and its owner for disseminating information about stocks on
their website, Stock-Line.com, without fully and accurately
disclosing that the featured companies had paid for the
touts. Jack Marks, formerly named Jacob Mestechkin, heads
Starwood Media Group, a small firm in lower Manhattan.
Starwood also publishes a monthly print version of the
internet site, Wall Street Reporter, which is distributed
free of charge. The Commission's complaint alleges that
Starwood's publications do not accurately describes the
compensation arrangements with featured companies, as
follows. At least three of the featured companies have paid
consideration to Starwood Media, in cash, stock, or options,
exceeding $10,000 in value. The three companies are a
start-up motorcycle manufacturer, American Quantum Cycles,
Inc.; a golf-course developer, Golf Ventures, Inc.; and a
technology personnel firm, Infocall Communications Corp.
The stocks of all three companies trade on the Over-the-
Counter bulletin board.
Stock-Line's disclosure, buried in a mislabeled
linkage, understates the amount of compensation received for
the touts, and fails to disclose Starwood's receipt of
potentially valuable options. The disclosure in the Wall
Street Reporter is also misleading in stating the featured
companies either "have purchased or may purchase" investor
relations services, when all companies have paid to appear
in the journal. According to the Commission's complaint,
Marks was on notice of the disclosure requirements, and
persisted in his unlawful conduct even after consulting an
attorney on the legal basis for a competitor's disclosure of
specific amounts of stocks and options from featured
companies. The Commission is seeking permanent injunctive
relief and penalties based on the alleged violations of
Section 17(b) of the Securities Act.
Without admitting or denying the allegations in the
Complaint, defendants Marks and Starwood have consented to
the entry of an order permanently enjoining them from
violations of Section 17(b) and requiring them to pay a
civil penalty of $15,000.
=======================================
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 41221 / March 29, 1999
Administrative Proceeding
File No. 3-9856
:
In the Matter of : ORDER INSTITUTING PUBLIC
: PROCEEDINGS PURSUANT TO
Golf Ventures, Inc. : SECTION 21C OF THE
: SECURITIES EXCHANGE ACT OF 1934,
: MAKING FINDINGS AND IMPOSING A
Respondent. : CEASE-AND-DESIST ORDER
:
:
:
I.
The Securities and Exchange Commission ("Commission") deems
it appropriate and in the public interest that public
administrative proceedings be, and hereby are, instituted against
Golf Ventures, Inc. ("GVI") pursuant to Section 21C of the
Securities Exchange Act of 1934 ("Exchange Act").
II.
In anticipation of the institution of these administrative
proceedings, GVI has submitted an Offer of Settlement ("Offer"),
which the Commission has determined to accept. Solely for the
purpose of this proceeding and any other proceeding brought by or
on behalf of the Commission or to which the Commission is a
party, and prior to a hearing pursuant to the Commission's Rules
of Practice, GVI consents to the issuance of this Order
Instituting Proceedings Pursuant To Section 21C of the Securities
Exchange Act of 1934, Making findings and Imposing a Cease-and-
Desist Order ("Order") and to the entry of the findings set forth
below, provided that GVI neither admits nor denies the findings
set forth herein, except as to jurisdiction over it and the
subject matter of this proceeding, which GVI admits.
III.
FINDINGS
On the basis of this Order and the Offer submitted by GVI,
the Commission finds[1] that:
A. GVI is a corporation organized under the laws of Utah.
GVI's securities are registered pursuant to Section 12(g) of the
Exchange Act, and GVI's common stock is publicly traded on the
Non-NASDAQ Over-The-Counter Bulletin Board market.
B. Between September 1996 and July 1997, GVI distributed
written information to the public in the form of press releases
and public filings with the Commission. GVI filed the following
documents with the Commission on the following dates:
1. Form 10SB for 1996 ("1996 GVI 10SB"), September
11, 1996;
2. Form 10-QSB for the period ending September 30,
1996 ("September 1996 GVI 10QSB"), December 23,
1996;
3. Form 10-QSB for the period ending December 31,
1996 ("December 1996 GVI 10QSB"), February 13,
1997; and
4. Form 10-KSB for the year ending March 31, 1997
("1997 GVI 10KSB"), July 15, 1997.
GVI also issued press releases and letters to shareholders on the
following dates: October 18, 1996 ("October 18th Press Release");
October 23, 1996 ("October 23rd Press Release"); November 4, 1996
("November 4th Press Release"); November 19, 1996 ("November
Shareholder Letter"); and December 1996 ("December Shareholder
Letter").
Badger's Secret Control Over GVI
C. From December 1992 through at least July 1997, George
Badger ("Badger") acted as the principal officer of GVI and made
all executive decisions. Badger controlled how GVI spent its
funds, determined how GVI raised capital, and was responsible for
its principal strategic business decisions. In April 1997,
Badger pled guilty in the United States District Court for the
Southern District of New York to a four-count, felony information
alleging: (i) conspiracy to commit securities fraud, wire fraud,
money laundering and commercial bribery; (ii) securities fraud;
(iii) criminal contempt; and (iv) perjury. In connection with
prior incidents, Badger previously: (a) pled guilty to bribing an
agent of the Internal Revenue Service; (b) pled guilty to
conspiracy to commit securities fraud; and (c) in an action
brought by the Commission, consented to a permanent injunction
barring him from future violations of the antifraud provisions of
the federal securities laws.
D. GVI filed materially false and misleading reports with
the Commission and issued materially false and misleading press
releases concerning Badger's affiliation with GVI. The 1996 GVI
10SB, the September 1996 GVI 10QSB, the December 1996 GVI 10QSB,
and the 1997 GVI 10KSB did not disclose Badger's substantial
control over GVI. The October 18th Press Release also failed to
disclose Badger's substantial control over GVI.
E. GVI knew, or was reckless in not knowing, that the 1996
GVI 10SB, September 1996 GVI 10QSB, December 1996 GVI 10QSB, 1997
GVI 10KSB, and October 18th Press Release were materially false
and misleading.
GVI's Purported Investigation Of Badger
F. In the October 18th Press Release, GVI stated that it
had commenced an internal investigation concerning Badger’s
arrest in October 1996 for securities fraud in connection with
GVI. During the period from October 18, 1996 through November
24, 1997, GVI never conducted a substantial, impartial
investigation into the allegations against Badger that led to his
October 1996 arrest and ultimate guilty plea to four felonies
concerning his fraudulent scheme involving GVI securities.
G. GVI knew, or was reckless in not knowing, that the
October 18th Press Release was materially false and misleading.
Misrepresentations Concerning The Red Hawk Project
H. In mid-1996, GVI hired Granite Construction ("Granite")
to perform construction work on GVI's residential golfing and
recreational community called Red Hawk International Golf &
Country Club ("Red Hawk Project"). The Red Hawk Project was
GVI's largest asset and its primary potential source of future
revenue; GVI had no other substantial source of revenue. On
October 31, 1996, Granite ceased working on the Red Hawk Project
because GVI ran out of funds to pay Granite for work being
performed at the Red Hawk Project. At that time, Granite had
completed less than 50% of the work it had contracted to perform.
I. Between October 1996 and July 1997, GVI made numerous
materially false public statements concerning Granite's progress
on the Red Hawk Project. For example, in the October 23rd Press
Release, November 4th Press Release; November Shareholder Letter,
December Shareholder Letter, September 1996 GVI 10QSB, December
1996 GVI 10QSB, and the 1997 GVI 10KSB, GVI touted the
substantial progress that Granite had supposedly achieved toward
completion of the Red Hawk Project when, in fact, Granite
actually had ceased all work after completing less than 50% of
the work it had contracted to perform.
J. GVI knew, or was reckless in not knowing, that the
October 23rd Press Release, November 4th Press Release, November
Shareholder Letter, December Shareholder Letter, September 1996
GVI 10QSB, the December 1996 GVI 10QSB and the 1997 GVI 10KSB
were materially false and misleading.
K. By reason of the conduct and events set forth in
paragraphs III.A through III.J above, GVI violated Sections 10(b)
and 13(a) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and
13a-13 thereunder.
L. As previously reported by GVI in filings with the
Commission, on November 25, 1997, GVI entered into a reverse
merger agreement with U.S. Golf Communities, Inc. ("USG") whereby
USG became the approximate 81% shareholder of GVI and management
of USG took over management of GVI’s business operations. Since
that time, GVI has issued several amendments to filings that had
been made by GVI’s prior management and which the Commission had
alleged were materially misleading. None of the allegations
contained in this Order Instituting Proceedings concern actions
or omissions by the persons who assumed management of GVI’s
business operations after its reverse merger with USG on November
25, 1997.
**FOOTNOTES**
[1]: The findings herein are made pursuant to GVI’s Offer of
Settlement and are not binding on any other person or entity in
this or any other proceeding.
IV.
CEASE-AND-DESIST ORDER
Based on the foregoing, the Commission deems it appropriate
and in the public interest to accept, and impose the sanction
specified in, the Offer submitted by GVI, and accordingly,
IT IS HEREBY ORDERED, effective immediately, that GVI shall
cease and desist from committing or causing any violation, and
from committing or causing any future violation, of Sections
10(b) and 13(a) of the Exchange Act, and Rules 10b-5, 12b-20,
13a-1 and 13a-13.
By the Commission.
Jonathan G. Katz
Secretary
=======================================
A LITTLE ON THE STOCK THAT MARKS HAD TOUTED AND WHO WAS INVOLVED
SEC v GEORGE BADGER, GOLF COMMUNITIES OF AMERICA, INC., et al
Keywords & Phrases
CaseNo: LR-15595, CourtCode: DIS, CourtName: DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; 97 CIV., Defendant: George Badger, Golf Communities of America, Inc., F.K.A. Golf Ventures, Inc., Duane Mar.ant, Stephen Spencer, Karl Badger, Marion Sherrill, Harmon S. Hardy, La Jolla Capital Corporation, Harold B. Gallison, Jr., Terry Hughes, Marvin Susemihl, David Rosenthal, andrew Sears, and William Slone; andrew Scudiero, Eric Nicholsberg, Dominick Caputo, Dominick Chieco, Craig Marino, Mat Matles, Anthony Selvaduri, Michael Dreitlein, Anthony Giambrone, Ian Hosang, and Frank Hartmann; Leonard, Plaintiff: SEC, State: NY New York, UniqueCaseRef: SEC>LR-15595, Securities, York, Commission, Szur, Badger, Exchange, Scudiero, Registered Representatives, Stock, Slutsky, States District Court, Jolla, United States, Age, Resident, Registered Broker-dealer, Pignatiello, Elaine Szur, Southern District, Wire Fraud, Retail Customers, Relevant Time, Gvi, Nicholsberg, Karl Badger, Criminal Action, Securitek Criminal Action, Relevant Time Period, Jssi , ContentID: 120242470
Case Documents
1 1997-12-18 SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 105563 24 pages |
