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SEC v FAMILIES ON LINE CORPORATION, MARK C. THURMAN, et al Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16930, Defendant: Families On Line Corporation, Mark C. Thurman, and Robert D. Fieney, Plaintiff: SEC, State: FL Florida, UniqueCaseRef: SEC>LR-16930, Fol, Investors, Thurman, Securities, Fiene, Offering, Fraud, Complaint, Internet, Complaint Alleges, Southern District, Offering Materials, Exchange Commission, United States, Florida, Purports, Subscribers, Investor Funds, Tbn, Excess, Professional Background, Investor Alert, Affinity Fraud, Sale, Customer Base, Business Plan, Affiliation, Stating, Prospectus , ContentID: 120241184

Case Documents
1 2001-03-09 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104277
3 pages
TXT
Total Documents: 1 document , 3 pages
Price: $ 19.95


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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
INVESTORS
THURMAN
SECURITIES
FIENE
OFFERING
FRAUD
COMPLAINT
INTERNET
COMPLAINT ALLEGES
SOUTHERN DISTRICT
OFFERING MATERIALS
EXCHANGE COMMISSION
DEFENDANTS
UNITED STATES
FLORIDA
PURPORTS
SUBSCRIBERS
INVESTOR FUNDS
TBN
EXCESS
PROFESSIONAL BACKGROUND
INVESTOR ALERT
AFFINITY FRAUD
SALE
CUSTOMER BASE
BUSINESS PLAN
AFFILIATION
STATING
PROSPECTUS
SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16930 / March 9, 2001

   SEC SUES INTERNET COMPANY AND TWO OFFICERS FOR OFFERING FRAUD
   TARGETING FUNDAMENTALIST CHRISTIANS. U.S. ATTORNEY'S OFFICE
   SIMULTANEOUSLY UNSEALS INDICTMENTS AGAINST THE TWO OFFICERS FOR
   SECURITIES FRAUD.

   SECURITIES AND EXCHANGE COMMISSION V. FAMILIES ON LINE CORPORATION,
   MARK C. THURMAN, AND ROBERT D. FIENE, Case No. 01-6369-CIV-LENARD
   (S.D. Fla., filed March 9, 2001)

   The Securities and Exchange Commission (SEC) announced that on March
   9, 2001, it filed a complaint against a company and two individual
   defendants for allegedly fraudulently raising $3.9 million in an
   unregistered securities offering. The SEC's complaint alleges that
   Families On Line Corp. (FOL), Mark Thurman, and Robert Fiene conducted
   an affinity fraud designed to raise money from fundamentalist
   Christian investors. Along with its complaint, the SEC sought and
   obtained an asset freeze against FOL, Thurman, and Fiene. At the same
   time, the United States Attorney's Office for the Southern District of
   Florida announced that it had indicted the two individuals sued by the
   SEC for securities fraud and other criminal conduct.

   According to the SEC's complaint, FOL is a Ft. Lauderdale, Florida
   based company that purports to offer subscribers "filtered" access to
   the Internet. FOL claims that its subscribers receive access to the
   Internet in a manner that filters out content involving, among other
   things, sexual or violent material or gambling. FOL, through Thurman
   and Fiene, raised $3.9 million from approximately 410 investors during
   the period from about July 1999 through December 2000, through
   unregistered sales of FOL stock and warrants. During that period,
   Thurman was FOL's Chief Executive Officer and Fiene was the company's
   Chief Operating Officer. Both Thurman and Fiene reside in Ft.
   Lauderdale.

   The SEC's complaint alleges that the defendants used false and
   misleading information in FOL's private placement memoranda and on
   FOL's Internet web site to raise investor funds. Among other things,
   the SEC's complaint alleges that
     * FOL falsely claimed that it was affiliated with the Trinity
       Broadcasting Network (TBN) and provided investors with a purported
       letter from the President of TBN stating that TBN was committed to
       helping FOL build its customer base and had over 322,000 "signed
       requests" by people willing to switch to FOL. In fact, FOL had no
       affiliation with TBN and the letter was a forgery.
     * FOL distributed a prospectus and business plan to prospective
SNIPPETS:
  • U.S. ATTORNEY'S OFFICE SIMULTANEOUSLY UNSEALS INDICTMENTS AGAINST THE TWO OFFICERS FOR
  • SECURITIES AND EXCHANGE COMMISSION V. FAMILIES ON LINE CORPORATION,
  • The Securities and Exchange Commission announced that on March 9, 2001, it filed a complaint
  • The SEC's complaint alleges that Families On Line Corp. (FOL), Mark Thurman, and Robert Fiene
  • the United States Attorney's Office for the Southern District of Florida announced that it
  • According to the SEC's complaint, FOL is a Ft. Lauderdale, Florida based company that
  • The SEC's complaint alleges that the defendants used false and misleading information in
  • Among other things, the SEC's complaint alleges that * FOL falsely claimed that it was
  • FOL had no affiliation with TBN and the letter was a forgery.
  • * FOL distributed a prospectus and business plan to prospective investors stating that it
  • The offering materials describe Thurman as having a professional background in "banking,
  • Thurman's resume, included in FOL's business plan, also touted Thurman as a religious leader
  • Those sections and rules prohibit certain transactions in securities not registered with the
  • Investors are advised to read the SEC's "Affinity Fraud" Investor Alert and the SEC's
  •    |