UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16651 / August 14, 2000
SECURITIES AND EXCHANGE COMMISSION V. BROADBAND WIRELESS INTERNATIONAL
CORPORATION, BROADCOM WIRELESS COMMUNICATIONS CORPORATION, IVAN W.
WEBB and DONALD L. KNIGHT, Defendants; and BLACK GIANT RESOURCES
CORPORATION, BROADBAND WIRELESS COMMUNICATIONS CORPORATION, MEDSCAN
TECHNOLOGIES, INC., and KIMBERLY KNIGHT, Relief-Defendants. Civil
Action No. 00-1375-R (USDC/W.D. Okl)
The United States Securities and Exchange Commission ("SEC") and the
Oklahoma Department of Securities ("ODS") announced that they have
filed coordinated enforcement lawsuits in federal and state district
courts to halt an alleged "pump and dump" stock manipulation scheme
involving the securities of Broadband Wireless International
Corporation ("BBAN"). BBAN is a Nevada Corporation with offices in
Cisco, Texas and Oklahoma City. Its common stock trades in the over
the counter market on the NASD OTC Bulletin Board under the symbol
"BBAN." On August 11, 2000, U.S. District Judge Tim Leonard, entered
orders freezing the assets of all defendants and relief defendants and
appointing a federal court receiver for the corporate defendants and
relief defendants.
The lawsuits allege that the scheme was primarily orchestrated by two
individuals with histories of prior problems with regulators and law
enforcement agencies, namely, Donald L. Knight ("Knight"), a convicted
felon, and Ivan W. Webb ("Webb"), BBAN's president, who was charged
with fraud in a prior SEC lawsuit. Knight pled guilty in 1990 to wire
fraud in connection with a securities scheme, for which he previously
was incarcerated and remains on probation. Webb was permanently
enjoined by a federal court from engaging in violations of the federal
securities laws in 1982 and was ordered to cease and desist from
violations of Kansas securities laws in 1992.
According to the SEC and ODS, in the fall of 1999, Knight, operating
through one of his several "nominee" companies, BroadCom Wireless
Communications Corporation ("BroadCom"), acquired control of BBAN, a
struggling public oil and gas company, and changed the company's
stated business purpose to "telecommunications." Over the next several
months, Knight and Webb caused BBAN to issue press releases and file
reports with the SEC which fraudulently touted the company's purported
acquisition of several private telecommunications companies. Knight
and Webb further hyped the acquisitions and BBAN's favorable business
prospects on the company's website and the "Raging Bull" Internet
bulletin board.
The SEC and ODS further allege that these promotional or "pumping"
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
CORPORATION, BROADBAND WIRELESS COMMUNICATIONS CORPORATION, MEDSCAN
TECHNOLOGIES, INC., and KIMBERLY KNIGHT, Relief-Defendants.
The United States Securities and Exchange Commission and the Oklahoma Department of
BBAN is a Nevada Corporation with offices in Cisco,
On August 11, 2000, U.S. District Judge Tim Leonard, entered orders freezing the assets of
The lawsuits allege that the scheme was primarily orchestrated by two individuals with
Webb was permanently enjoined by a federal court from engaging in violations of the federal
According to the SEC and ODS, in the fall of 1999, Knight, operating through one of his
Knight and Webb caused BBAN to issue press releases and file reports with the SEC which
Knight and Webb further hyped the acquisitions and BBAN's favorable business prospects on the
The SEC and ODS further allege that these promotional or "pumping" efforts resulted in a
In late 1999, shortly after Knight acquired control of the company, BBAN stock was trading at
Concurrently, Knight sold or "dumped" millions of shares of restricted BBAN stock he held in
These investors also were falsely led to believe that they were buying BBAN shares that they
The SEC's complaint charges that Knight, Webb, BBAN and BroadCom violated Sections 5, 5and
Further, the complaint charges that BBAN, aided and abetted by Webb, violated Section 13of
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