SEC FILES FRAUD ACTION AGAINST DOUGLAS NORMAN, FOUNDER OF WORLD TRANSPORT
AUTHORITY, INC.
On Feb. 21, the Commission filed suit in the United States District
Court for the Southern District of New York against Douglas Norman, the
self-described founder and de facto chief executive of World Transport
Authority, Inc. (WTA). According to the complaint, WTA, a Canadian
corporation headquartered in the San Diego, California, area, claims to
have designed a revolutionary car, called the WorldStar, and a unique
system for manufacturing the car, called a "micro-factory," which can be
set up in 90 days and thereafter produce a single car per day. The
complaint alleges that beginning no later than calendar year 2000, and
continuing into 2001, Norman knew of and approved materially false or
misleading press releases issued by WTA, made or knowingly permitted the
posting of materially false or misleading statements on the Internet,
failed to file required reports concerning his beneficial ownership and
holdings of WTA stock, and permitted WTA to file materially false or
misleading quarterly and annual reports with the Commission. Also, the
complaint alleges that during the period when the false or misleading
statements were being made, Norman sold at inflated prices at least 5.5
million shares of WTA stock without registration, realizing at least
$1.8 million from the sales.
The U.S. Attorney's Office for the Southern District of New York, on the
same day, announced that an indictment had been handed up against Norman
charging one count of securities fraud.
In its complaint, the Commission requests that the Court issue a final
judgment of permanent injunction and other relief against Norman based
upon violations he committed, or for which he is liable as a controlling
person of WTA, of Sections 5(a), 5(c), and 17(a) of the Securities Act
of 1933, Sections 10(b), 13(a),13(d), and 16(a) of the Securities
Exchange Act of 1934 and Exchange Act Rules 10b-5, 12b-20, l3a-1, 13a-
13, 13d-1, and 16a-3. The Commission also is seeking an order that
Norman be prohibited from acting as an officer or director of a public
company and from participating in any offering of penny stock, that he
provide an accounting, that he disgorge, with prejudgment interest,
certain trading profits and other remuneration, and that he pay civil
penalties under the Securities Act and the Exchange Act. [SEC v.
Douglas Norman, Civil Action No. 03-CV-159, NB, S.D.N.Y., Feb. 21, 2003]
(LR-17993) |
