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SEC v SUNSET INVESTMENT GROUP, INC., JAMES BROWN, et al Click to find out why . . .



Keywords & Phrases
CaseNo: LR-16913, CourtCode: DIS, CourtName: IN U.S. DISTRICT COURT (DISTRICT OF COLORADO) FOR MAKING FALSE AND, Defendant: Sunset Investment Group, Inc., James Brown, Pinnacle Capital Advisors, and Austin Tanner, Plaintiff: SEC, State: WA Washington, UniqueCaseRef: SEC>LR-16913, Commission, Brown, Internet Fraud, Misleading, Performance Claims, Testimonials, Trading, Homepages, District, Colorado, Sunset, Tanner, Stock, Complaint, Securities, Exchange, Investment, Pinnacle, Advisors, Websites, Newsletter, Trading Recommendations, Subscribers, Oex, Alleges, Internet Fraud Sweep, Thereunder, Civil Money Penalty, Avoid Internet Investment, Internet Investment Schemes , ContentID: 120241201

Case Documents
1 2001-02-28 SEC LITIGATION RELEASE
[ see first page and extracted highlights below  ] ItemID: 104294
2 pages
TXT
Total Documents: 1 document , 2 pages
Price: $ 19.95


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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS
BROWN
INTERNET FRAUD
MISLEADING
PERFORMANCE CLAIMS
TESTIMONIALS
TRADING
HOMEPAGES
DISTRICT
COLORADO
SUNSET
TANNER
STOCK
COMPLAINT
SECURITIES
EXCHANGE
INVESTMENT
PINNACLE
ADVISORS
WEBSITES
NEWSLETTER
TRADING RECOMMENDATIONS
SUBSCRIBERS
OEX
ALLEGES
INTERNET FRAUD SWEEP
THEREUNDER
CIVIL MONEY PENALTY
AVOID INTERNET INVESTMENT
INTERNET INVESTMENT SCHEMES
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,
  •    |