U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 16913 / February 28, 2001
, Civ. No. 01-M-0358 (District of Colorado)
Today, the Commission sued Sunset Investment Group, Inc. ("Sunset"),
James Brown, Pinnacle Capital Advisors ("Pinnacle"), and Austin Tanner
in U.S. District Court (District of Colorado), for making false and
misleading performance claims and testimonials appearing on three
different websites, namely OptionInvestor.com, SplitTrader.com, and
NetBulls.com, and in press releases. All three sites provide stock and
market analysis and publish a stock advisory newsletter offering stock
analysis, trading strategies, and trading recommendations and are
operated by Sunset and its president and sole shareholder, Brown, a
resident of Littleton, Colorado. Tanner, from Westchester, Illinois,
and his company Pinnacle, were hired by Brown to create the homepages
of the websites.
According to the Complaint, from at least October 1998 until May 2000,
OptionInvestor.com posted misleading performance data on its homepage
and in press releases, claiming returns ranging from 60% to 240% for
subscribers who followed the trading philosophy and trading
recommendations in its newsletter and its OEX index options service,
the OEX Skybox. The Commission alleges that all of the performance
claims were false and misleading because, even though they were
hypothetical, the site indicated that the performance reflected actual
results. Moreover, the calculations to determine the performance
results were materially flawed and dependent on hindsight, making it
impossible for subscribers to achieve similar results. The Commission
also alleges that SplitTrader.com and NetBulls.com posted on their
homepages from October 1999 until June 2000 false and misleading
testimonials that praised the performance of the sites. The Commission
claims that the testimonials were copied almost verbatim from the
OptionInvestor.com homepage and had nothing to do with the performance
of either SplitTrader.com or NetBulls.com. The Complaint also states
that Tanner drafted, in collaboration with Brown, the false
performance claims appearing on the OptionInvestor.com site and posted
the false testimonials on the SplitTrader.com and NetBulls.com sites.
Without admitting or denying the allegations in the Complaint, Sunset
and Brown consented to the entry of an Order that enjoins them from
violating Section 10(b) of the Securities Exchange Act of 1934 and
Rule 10b-5 thereunder and orders them to pay a civil money penalty of
$70,000.
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
No. 01-M-0358 (District of Colorado)
Today, the Commission sued Sunset Investment Group, Inc., James Brown, Pinnacle Capital
All three sites provide stock and market analysis and publish a stock advisory newsletter
Tanner, from Westchester, Illinois, and his company Pinnacle, were hired by Brown to create
According to the Complaint, from at least October 1998 until May 2000, OptionInvestor.com
The Commission alleges that all of the performance claims were false and misleading because,
The Commission also alleges that SplitTrader.com and NetBulls.com posted on their homepages
Without admitting or denying the allegations in the Complaint, Sunset and Brown consented to
This action is brought as part of the Commission's Fifth Internet Fraud Sweep.
For tips on how to avoid Internet investment schemes,
For a description of other SEC enforcement actions involved in this Internet Fraud Sweep,
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