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Microcap & Penny Stocks : Remington-Hall (REMH) -- Ignore unavailable to you. Want to Upgrade?

To: leigh aulper who wrote (35)	10/23/1998 7:55:00 PM
From: Arcane Lore	Respond to of 48

SEC HALTS CONVICTED FELON'S NEW INTERNET MICROCAP FRAUD On October 20, the Commission filed an emergency action to halt the fraudulent activities of Remington-Hall Capital Corp., a Dallas based company whose stock is publicly traded, and its president and chief executive officer, Douglas T. Fonteno, a felon convicted in 1996 for securities fraud and currently on probation. Judge Joe A. Fish, federal district judge for the Northern District of Texas, granted the Commission's request for a temporary restraining order and asset freeze against Fonteno, and Remington-Hall agreed to the entry of a preliminary injunction. The restraining order and preliminary injunction will be entered on October 21. The Commission's complaint charges that after Fonteno's release from prison in 1997, he raised at least $1 million from investors in a fraudulent offering of unregistered Remington-Hall stock. Further, the complaint alleges that Remington-Hall and Fonteno distributed false and misleading informational releases to the public, including "spamming" (sending unsolicited e-mail) and website postings via the Internet, for the purpose of increasing or supporting the price of the company's publicly traded shares. The Commission's complaint additionally charges Fonteno with diverting at least $100,000 of investors' funds to pay his probation fees and victim restitution from his prior securities fraud conviction, to pay credit card bills and buy an automobile for his maid. Further, the complaint states that Fonteno, now in jail for violating the terms of his probation, instructed company employees to issue company checks for his attorney fees, and for payment of an anticipated release bond. The Commission also seeks an order permanently enjoining Remington-Hall and Fonteno from future violations of the federal securities laws, and an order requiring disgorgement of all wrongfully obtained profits, with prejudgment interest, and civil penalties against each defendant. [SEC v. Remington-Hall Capital Corp., and Douglas T. Fonteno, 3:98CV2470-G, USDC, ND/TX, Dallas Division] (LR-15943) sec.gov

To: leigh aulper who wrote (35)	10/23/1998 7:55:00 PM
From: Arcane Lore	Read Replies (1) \| Respond to of 48

The Dallas Morning News had a story on the SEC lawsuit. A short excerpt may be of interest: SEC trying to shut down Internet sales scam ... The bulk of Remington-Hall's assets, according to the SEC suit, are what the agency calls "dubious" real estate holdings. Mr. Fonteno and his firm are alleged to have suggested to potential investors that Remington-Hall controls approximately $30 million in those properties. "In truth and fact, Remington-Hall does not own most - if not all - of the properties it claims and has no revenues other than its receipts of investor funds," the SEC suit says. Robert M. Mow, who served as vice president of finance under Mr. Fonteno, signed a statement for SEC investigators on Oct. 19 and revealed that Remington-Hall now "has no source of revenue and has approximately $25,000 in its bank accounts." ... dallasnews.com