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

To: Arcane Lore who wrote (6472)	8/1/2002 3:50:02 PM
From: Mighty_Mezz	Read Replies (5) \| Respond to of 7056

Glad to see Wilcher get her due, but it is most irksome that Reed got off unscathed. Now what to do with the money, if she ever comes up with it? I think they should give it to the shareholders. Most of it, anyway. The "bashers" should get some for exposing the scam early on. ;)

To: Arcane Lore who wrote (6472)	3/26/2003 3:16:03 PM
From: Arcane Lore	Read Replies (2) \| Respond to of 7056

From today's SEC Digest: COURT HOLDS ARIZONA TRUST AND TRUSTEE IN CONTEMPT FOR FAILURE TO DISGORGE ILLEGAL PROFITS FROM ROLE IN INTERNET PUMP AND DUMP SCHEME On March 24, a federal judge in Santa Ana, California, held Life Foundation Trust and its trustee Jeannette Wilcher in civil contempt for their failure to pay over $1 million required by a July 29, 2002, judgment against them. The judgment required payment of $1,191,423 in combined disgorgement of illegal profits and prejudgment interest for defendants' role in a "pump and dump" scheme involving the stock of Hitsgalore.com, Inc. The March 24 Order requires that Wilcher be incarcerated and forced to surrender her passport for failure to disgorge the illegal profits, and requires Life Foundation Trust to pay an escalating daily fine of $1,000, doubling every day thereafter until Life Foundation Trust pays the ordered disgorgement. Hitsgalore was a publicly traded Internet company located in Rancho Cucamonga, California, that maintained a website providing an Internet search engine and leasing advertising space to consumers. On Nov. 28, 2001, the Commission filed an action against Wilcher and Life Foundation Trust along with Hitsgalore and its former president, Stephen J. Bradford. The complaint charged Hitsgalore and Bradford with fraud in connection with several press releases issued by the company between April 16 and May 10, 1999, that contained false and misleading statements about a purported investment in Hitsgalore by Life Foundation Trust. The fraudulent press releases caused a dramatic rise in the price of Hitsgalore's stock, quoted on the OTCBB, from $6.3125 to a high of $20.125. The complaint also charged Life Foundation Trust, a Scottsdale, Arizona, for-profit trust, and Wilcher, a resident of Scottsdale, Arizona, with aiding and abetting Hitsgalore's fraud and illegally selling Hitsgalore stock. The Commission previously settled its claims against Bradford and Hitsgalore. On July 29, 2002, the Honorable Gary L. Taylor, U.S. District Judge for the Central District of California, granted summary judgment in favor of the Commission against Life Foundation Trust and Wilcher without the need for trial. Among other relief, the Court held Life Foundation Trust and Wilcher jointly liable for disgorgement of the $1,024,418.50 that Life Foundation Trust made in profits on the illegal sale of Hitsgalore stock; ordered Life Foundation Trust to pay a civil penalty of $1,024,418.50; and ordered Wilcher to pay a civil penalty of $110,000. The Commission applied for a contempt order after Wilcher and Life Foundation Trust failed to pay the ordered disgorgement. [SEC v. Hitsgalore.com, Inc., Stephen J. Bradford, Life Foundation Trust and Jeanette B. Wilcher, Civil Action No. SACV 01-1133 GLT (ANx) C.D. Cal.] (LR-18052) sec.gov