To: Joe Copia who wrote (18880 ) 8/10/1999 11:21:00 AM From: campe Respond to of 25711
WOW, I was just in the process of responding to that message about getting paid to browse and it disappeared before I could submit...weird. Anyways, looks like SEC is cracking down on many of these type of "promotions"...The SEC Article SEC Brings First Actions To Halt Unregistered Online Offerings of So-Called "Free Stock" FOR IMMEDIATE RELEASE 99-83 Washington, D.C., July 22, 1999 – In response to a wave of so-called "free stock" offerings made through the Internet and a resulting flood of investor complaints, the Securities and Exchange Commission brought and settled four enforcement actions against four promoters and two Internet companies who offered and distributed free stock through online websites without properly registering their offerings. SEC Enforcement Director Richard H. Walker said, "Free stock is really a misnomer in these cases. While cash did not change hands, the companies that issued the stock received valuable benefits. Under these circumstances, the securities laws entitle investors to full and fair disclosure, which they did not receive in these cases." Mr. Walker also acknowledged the importance of complaints and tips received from investors regarding these cases, saying, "The investors who write us and e-mail us through our homepage are an essential part of our enforcement program. Along with our CyberForce, they are our eyes and ears in cyberspace." In each of the four cases, the investors were required to sign up with the issuers' web sites and disclose valuable personal information in order to obtain shares. Free stock recipients were also offered extra shares, in some cases, for soliciting additional investors or, in other cases, for linking their own websites to those of an issuer or purchasing services offered through an issuer. Through these techniques, issuers received value by spawning a fledgling public market for their shares, increasing their business, creating publicity, increasing traffic to their websites, and, in two cases, generating possible interest in projected public offerings. Two of these free stock issuers offered stock through websites that featured false claims. In one case, investors were told that the free shares they received would give them interests in an aerospace company that would revive lunar exploration. In fact, the company was never incorporated and its promoter had no space exploration or aerospace engineering experience. In another case involving an Internet telecommunications marketing firm, the website informed free stock recipients that their shares could eventually exceed $200 each in value, even though the firm had realized less than $30 in gross operating revenues. In each of the four administrative proceedings, the respondents consented, without admitting or denying the findings in the Commission's orders, to settlements in which they agreed to cease and desist from future violations of the registration provisions of the Securities Act of 1933. In addition, respondents Joe Loofbourrow (promoter of American Space Corp.), Web Works Marketing.com, Inc. and Web Works founder Trace D. Cornell agreed to refrain from violating the antifraud provisions of the federal securities laws.