So how does this go -- you raise $5.1m from victims, albeit greedy stupid ones, and the SEC makes you give back $50k --- ooooh!
COMMISSION SETTLES WITH DEFENDANTS IN "FLYING CAR" SCHEME
On Feb. 12, the Commission filed a civil fraud action against Paul S.
Moller (Moller) and Moller International, Inc. (Moller International) in
connection with a fraudulent unregistered stock offering and the filing
of a fraudulent registration statement with the Commission.
The Commission's complaint alleges Moller International, a California
company, and Moller began selling the unregistered shares of stock
directly to the public via the Internet raising approximately $5.1
million from more than 500 investors nationwide. The company was
supposedly engaged in the development of a revolutionary personal
aircraft, dubbed "the Skycar" that would allow a person to travel at
speeds over 400 miles-per-hour above roadways for about the same price
as a luxury automobile. Moller, age 64, the company's founder, chief
executive office and president, made false and misleading statements
about the company's imminent listing on the NYSE and the Nasdaq Stock
Market, the projected value of company shares after such listing, and
the prospect for Skycar sales and revenue. The company also filed a
fraudulent registration statement with the Commission that exaggerated
the true scope of patents the company held for the Skycar.
In its complaint, the Commission alleged that the defendants violated
the antifraud and the registration provisions of the federal securities
laws. Simultaneously with the filing of its action, the Commission
announced that each of the Defendants had agreed to a settlement in
which they consented to the entry of a permanent injunction and Moller
agreed to pay a civil penalty in the amount of $50,000. [SEC v. Moller
International, Inc. and Paul S. Moller, Defendants, USDC, Eastern
District of California, Sacramento Division, Civil Action No. 2:03-CV-
261 (WBS) DAD] (LR-17987) |
