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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (61443)	10/25/2000 7:35:59 PM
From: StockDung	Read Replies (2) \| Respond to of 122087

Enterprise Solutions Settles SEC Civil-Fraud Charges on Revenue Washington, Oct. 25 (Bloomberg) -- Enterprises Solutions Inc., which says it is in the Internet security business, agreed to settle regulators' fraud charges that it baselessly projected revenue and falsely claimed to have entered contracts. The Boca Raton, Florida-based company also failed to disclose that it was controlled by a convicted felon named Herbert S. Cannon, the Securities and Exchange Commission alleged. Cannon sold the company's stock during the alleged fraud and made millions of dollars in illegal profits, the SEC contended. Neither an Enterprises attorney nor company president John A. Solomon could be reached for comment. The company, which has a $31 million market value, neither admitted nor denied wrongdoing under the settlement. In April, the SEC filed civil-fraud charges against the company, Cannon and Solomon. Cannon and Solomon are contesting the charges. Enterprises agreed today to be subject to stiffer sanctions if it commits similar violations in the future. Its stock soared from as low as 1 1/2 on Jan. 13 to as high as 22 on March 29 before the SEC issued an order the next day halting trading. Enterprises resumed trading about two weeks later. Its shares fell 50 cents to $4 in today's trading. In the settlement, Enterprises agreed to change its SEC registration statement with regard to Cannon's role and activities. Enterprises' statement will now say that he ``performed a significant management role for the company;'' has three prior criminal convictions, including one for conspiracy to defraud the government in the sale of coal-mine tax shelters; and was barred from the securities industry. Cannon's lawyer has filed a court document saying he has never ``had any legal or beneficial ownership interest'' in accounts holding Enterprises stock, the company has said. Oct/25/2000 17:39 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.