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Non-Tech : GENI: GenesisIntermedia.com Inc -- Ignore unavailable to you. Want to Upgrade?

To: afrayem onigwecher who wrote (131)	6/13/2001 10:08:46 AM
From: Sir Auric Goldfinger	Respond to of 574

GENI's major shareholder's other company in SEC indictment (just yesterday), can GENI be far behind?!? COMPLAINT FILED AGAINST WORLD HOMES, INC., MERLE FERGUSON AND SUSAN DONOHUE "A complaint has been filed seeking permanent injunctions against World Homes, Inc. and Merle Ferguson alleging violations of the antifraud and securities registration provisions of the federal securities laws and against Susan Donohue for violations of the securities registration provisions. The complaint also seeks civil money penalties against Ferguson. The complaint alleges that from approximately January 2000 through February 2001, World Homes, through the company=s President and Chief Executive Officer, Merle Ferguson, distributed several false and misleading press releases misrepresenting, among other things: 1) that World Homes operated and maintained a production facility for its cement product; 2) that World Homes possessed financing of fifteen million dollars; and 3) that World Homes had generated over $480 million in contracted business. It is alleged these false press releases resulted in an increase in the price of World Homes' common stock and an increase in the volume of shares traded. The complaint alleges this conduct violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The complaint further alleges that from on or about July 16, 1999, through February 20, 2001, World Homes made nine filings on Form S-8, registering 4,892,977 shares with a stated maximum value of $3,777,313. It is alleged these shares were issued to Ferguson, Donahue and entities controlled by them and were issued in large part not to compensate those employees, but to raise capital for World Homes. It is further alleged that these shares were sold into the market without registration and that most of the proceeds remitted to World Homes, which used the funds to finance operations. It is alleged this conduct violated Sections 5(a) and 5(c) of the Securities Act. [SEC v. World Homes, Inc., et al., Civil Action No. CV-S-01-658-PMP-LRL, USDC, D. Nev.] (LR-17032) sec.gov