UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16010 / December 23, 1998
SECURITIES AND EXCHANGE COMMISSION v. REMINGTON-HALL CAPITAL CORP., and DOUGLAS T. FONTENO, 3:98CV2470-G, USDC, ND/TX (Dallas Division)
On December 21, 1998, Judge Joe A. Fish, federal district judge for the Northern District of Texas, entered a final judgment by default against Douglas T. Fonteno ("Fonteno"), formerly president and chief executive officer of Remington-Hall Capital Corp. ("Remington-Hall"). The Securities and Exchange Commission's ("Commission") complaint charged Fonteno with raising at least $1 million from investors in a fraudulent offering of unregistered Remington-Hall stock. Further, the Commission's complaint charged that Fonteno distributed false and misleading informational releases to the public, including "spamming" (sending unsolicited e-mail) and website postings via the Internet, for the purpose of artificially increasing or supporting the price of the company's publicly traded shares.
Fonteno, who was convicted in 1996 for state securities fraud, recently pled guilty to violating the terms of his probation in the criminal matter, based on the violations set out in the Commission's complaint, and was sentenced to ten years incarceration.
The final judgment permanently enjoins Fonteno from future violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The court also ordered Fonteno to pay disgorgement in the amount of $126,329.98, which represents the amount paid or attributable to him from the proceeds of unlawful securities transactions set out in the Commission's complaint, plus prejudgment interest of $6,252.18, and a civil penalty of $12,567. ... (Snip of repetitious text)
[ Securities and Exchange Commission v. Remington-Hall Capital Corp., and Douglas T. Fonteno, 3:98CV2470-G, USDC, ND/TX (Dallas Division)] (LR- )
Phillip W. Offill
Trial Counsel
Fort Worth District Office
817/978-6450
sec.gov |
