Agora's On-going Efforts to Disseminate False Information to the Investing Public
36. Agora promoted other securities in its newsletters. Even after Agora became aware of the Commission's investigation, its newsletters have continued to publish e-mails promoting numerous securities accompanied by fantastic claims of quick profits or inside information.
37. For example, Agora publications have touted stocks that it claims will double or triple in value over the next year. Other Agora publications claim to provide information that allows an investor to "turn $10,000 into $114,280 by April 18, 2003."
38. Agora continues to promise its subscribers, "Almost Unbelievable Profits - 4.5 Times Your Money in 48 Hours."
39. As recently as the first week in April 2003, Agora published articles making similar claims of exorbitant profits. In each instance, recipients of the e-mails are offered "free" copies of the headlined reports if they subscribe to one of the various Agora newsletters at a cost of from $69 to $1250 a year. The money-making investments featured in the reports are typically microcap issuers with cures for cancer or AIDS or a technological breakthrough. Some of the tips are characterized as being based on "secret" or "inside" information.
FIRST CLAIM FOR RELIEF
FRAUD IN CONNECTION WITH THE PURCHASE
OR SALE OF SECURITIES
Violations of Section 10(b) of the Exchange Act, 15 U.S.C. §78j(b),
And Rule 10b-5 thereunder, 17 C.F.R. § 10b-5
40. The Commission repeats and realleges each and every allegation contained in paragraphs 1 through 42, as if fully set forth herein.
41. Defendants, by engaging in the conduct described above, directly or indirectly, in connection with the purchase or sale of securities, by the use of means or instrumentalities of interstate commerce, or of the mails, or of a facility of a national securities exchange, with scienter:
employed devices, schemes or artifices to defraud;
made untrue statements of material fact or omitted to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or
engaged in acts, practices or courses of business which operated or would operate as a fraud or deceit upon other persons;
in violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
42. By reason of the foregoing, defendants violated, and unless restrained and enjoined will continue to violate, Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240.10b-5.
PRAYER FOR RELIEF
WHEREFORE, plaintiff Commission respectfully requests that this Court:
I.
Issue findings of fact and conclusions of law that Defendants committed the violations alleged herein.
II.
Issue an Order Issue in a form consistent with Rule 65(d) of the Federal Rules of Civil Procedure, permanently enjoining defendants Agora, Pirate and Stansberry, and their officers, agents, servants, employees, attorneys, and accountants, and those persons in active concert or participation with any of them, who receive actual notice of the order by personal service or otherwise, and each of them, from engaging in the transactions, acts, practices and courses of business described herein, and from engaging in conduct of similar purport and object in violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
III.
Enter an order that defendants Agora, Stansberry and Pirate, provide an accounting and disgorge their ill-gotten gains from the illegal conduct alleged in this Complaint and to pay prejudgment interest thereon.
IV.
Enter an Order that Defendants Agora, Stansberry and Pirate pay civil penalties pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d) of the Exchange Act, 15 U.S.C. § 78u(d), for the violations alleged herein.
V.
Retain jurisdiction of this action in accordance with the principles of equity and the Federal Rules of Civil Procedure in order to implement and carry out the terms of all orders and decrees that may be entered, or to entertain any suitable application or motion for additional relief within the jurisdiction of this Court.
DATED: November 14, 2003
Respectfully submitted
_______________________
KAREN L. MARTINEZ
THOMAS M. MELTON
BRENT R. BAKER
Securities and Exchange Commission
50 South Main Street, Suite 500
Salt Lake City, Utah 84144
(801) 524-5796
(801) 524-3558 (fax)
Attorneys for the Plaintiff
Securities and Exhange Commission
sec.gov |
