Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : HeartSoft Incorporated (HTSF) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Walsh who wrote (1750)	9/7/2000 2:54:51 PM
From: Alan Vennix	Respond to of 1781

Bob, there are several references to the SEC action. If I can locate I will post the link. The company announced the SEC investigation and the proposed fines in their 10k(?) filed with the SEC a few months back. The following is from a story in the Tulsa news: "HEARTSOFT SETTLES SUIT AFTER FRAUD ALLEGATIONS: Broken Arrow-based Heartsoft Inc., an educational software developer, settled charges with the Securities and Exchange Commission on Wednesday. The SEC had alleged in a lawsuit that Heartsoft used its Web site to announce nonexistent agreements to distribute software to foreign countries and develop a child-safe Internet web browser. Heartsoft's two top executives, Benjamin Shell and Jimmy Butler, agreed to pay a total of $261,000 to disgorge profits from their actions and to pay financial penalties, the SEC said. The company and its executives neither admitted nor denied wrongdoing under the settlement, the government agency said. " Also, although not in this news story, HTSF will have all PR's reviewed by outside counsel for the next 4 yrs. In an email from Ben Shell in response to an inquiry from an investor, which the recipient posted on RB, Ben said he made some $89,000(?) profit in alleged wrongful trades which he reinvested in the company along with an additional $40k of his own money. He also indicated the company would likely be issuing a PR soon detailing some of this info (after review by outside legal counsel, I assume).

To: Bob Walsh who wrote (1750)	9/7/2000 8:27:52 PM
From: Alan Vennix	Read Replies (1) \| Respond to of 1781

Bob, HTSF issues a PR about the SEC action: Tulsa, Okla.- (BUSINESS WIRE) - September 7, 2000 - Heartsoft, Inc. (OTC BB: HTSF) reported today that the Company had reached a settlement with the Securities and Exchange Commission stemming from an investigation which began in 1999. The investigation centered around the accuracy of the wording of certain press releases issued by Heartsoft during the first quarter of 1999, as well as other matters. The Company had reported in its Form 10-KSB for the period ended March 31, 2000, the SEC investigation and the likelihood that a lawsuit would be filed by the SEC. This settlement concludes that matter. In agreeing to the settlement announced on Wednesday by the Securities and Exchange Commission, the Company and two of its senior officers neither admitted nor denied any wrongdoing. "We deeply regret any actions which resulted in the SEC investigation and the subsequent settlement. We are, however, pleased to finally have this matter behind us. Everyone at Heartsoft is excited about focusing all of our available resources on completing Internet Safari(TM), our new patent-pending Internet browser for children," said Benjamin Shell, Heartsoft Chairman and CEO. Under the terms of the settlement which had been previously approved by both the SEC and Heartsoft, the SEC filed a complaint against the Company in U.S. District Court in Tulsa on September 5, 2000. The complaint was filed simultaneously with certain stipulations and consents as well as agreed final judgments which also had been approved by the SEC and Heartsoft prior to the final settlement. The Company expects that these stipulations and consents will be accepted by the Court and that the agreed final judgments will be entered resolving the lawsuit and implementing the settlement. The complaint also named Benjamin P. Shell, Chairman of the Board, President and Chief Executive Officer of Heartsoft, and Jimmy L. Butler, a director and Vice-President of Heartsoft, as defendants. Under the terms of the stipulations and consents and the agreed final judgments, the Company, Mr. Shell and Mr. Butler would be permanently enjoined from committing violations of certain securities laws and Mr. Shell and Mr. Butler would individually pay disgorgement of certain trading profits, interest and civil penalties totaling $146,402.99 and $129,850.94, respectively. The Company and Messrs. Shell and Butler neither admitted nor denied any of the allegations in the complaint filed by the SEC. About Heartsoft, Inc. Heartsoft, Inc. publishes and distributes Internet and multimedia educational software products for early-learning students to schools and homes nationwide. The Company has reported that it currently developing a secure children's Internet browser which incorporates advanced image analysis software capable of detecting pornographic images transmitted over the Internet. The Company has filed for patent protection of its pornographic image detection software with the U.S. Patent and Trade Office, and such patent is currently pending.