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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (5016)	2/1/2000 11:26:00 PM
From: Q.	Read Replies (1) \| Respond to of 7056

In early 1998, the Federal Trade Commission ("FTC") filed a lawsuit against Tom Maher, former President of IBB, Audrey Reed, and Mr. Reed for failure to refund money to customers and allegedly misleading investors about the potential return on their investment. In April 1998, Mr. Reed filed an answer to the FTC complaint, pro se, denying all the allegations, and did not receive any subsequent correspondence from the government. Mr. Reed says he was unaware any case was pending against him until stories appeared in the press and he was served with a default judgment at the Hitsgalore.com office in Rancho Cucamonga, CA on May 11, 1999. The judgement served on Mr. Reed informed him that a federal judge in Baltimore issued an order in April, 1999 for he and his co-defendants to pay $613,110 to 100 customers of IBB. After being served on May 11, 1999, Mr. Reed immediately and pro-actively contacted the FTC through counsel regarding the matter. As of November 30, 1999, Mr. Reed is actively negotiating with the FTC to reach an amicable settlement of this matter. The FTC has acknowledged that it did in fact receive pleadings in this case in April 1998, from both Audrey and Dorian Reed in response to the FTC Complaint. However, said pleadings sat in an FTC office without having been opened for over a year. Mr. Reed and the FTC are now exchanging information about the facts that gave rise to the lawsuit, so that the FTC can have a more realistic view of what actually happened. Although a mere employee of the subject company, Mr. Reed is stepping forward to get this matter resolved and is not waiting for the FTC to find the management who actually ran the corporation. It is anticipated that a settlement will be reached in the near future. from the 10k/a filed Dec. 11, 1999 edgar-online.com