SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16636 / July 27, 2000
Securities and Exchange Commission v. Phillip Herman, Marc Wein,
Millennium Services Corp., and Branin Investments, Inc., 00 Civ. 5575
(BSJ) (S.D.N.Y.)
The Securities and Exchange Commission ("Commission") filed a
complaint today in the United States District Court for the Southern
District of New York against Phillip Herman ("Herman"), Marc Wein ("M.
Wein"), Millennium Services Corp. ("Millennium"), and Branin
Investments, Inc. ("Branin"). The complaint charges the defendants
with making false and misleading statements in offering and selling
unregistered securities of Millennium, a start-up company formed by
Branin purportedly to acquire and operate funeral homes. The
Commission alleges that the defendants raised $4.8 million from
fifty-six individual investors and one institutional investor and
misappropriated at least half of those funds.
The Commission's complaint names the following defendants
1. Millennium was incorporated in Delaware on May 20, 1997 and has its
principal offices in New York, New York. Millennium was formed
purportedly to acquire, own, and operate primarily minority-owned
funeral homes throughout the United States. In November 1997,
Millennium merged with MSC Development Corp., an entity formed to
conduct the securities offering at issue in the complaint. Neither
Millennium nor its securities are registered with the Commission.
2. Branin was incorporated in Delaware on May 22, 1994 and shares its
principal offices with Millennium in New York, New York. Branin is not
registered with the Commission. Branin describes itself as a merchant
banker that creates, acquires and manages companies as a service to
other companies in exchange for an advisory fee.
3. Herman, age 53, resides in Medford, New Jersey. Herman has been
Millennium's chairman since the company's inception and sole
shareholder of Branin since 1994.
4. M. Wein, age 41, resides in New York, New York. M. Wein was a
registered representative with FAB Securities of America, Inc.
("FAB"), a registered broker-dealer f/k/a RAS Securities, Inc., until
he resigned in June 1999.
The complaint alleges that
Herman, M. Wein, Millennium, and Branin conducted a purported
SNIPPETS:
Securities and Exchange Commission v. Phillip Herman, Marc Wein, Millennium Services Corp.,
The Securities and Exchange Commission filed a complaint today in the United States District
The complaint charges the defendants with making false and misleading statements in offering
The Commission alleges that the defendants raised $4.8 million from fifty-six individual
Millennium was incorporated in Delaware on May 20, 1997 and has its principal offices in New
Millennium was formed purportedly to acquire, own, and operate primarily minority-owned
Branin was incorporated in Delaware on May 22, 1994 and shares its principal offices with
Herman, age 53, resides in Medford, New Jersey.
M. Wein sold much of the preferred stock to individual unaccredited investors and received
Herman, the chairman of Millennium and the sole shareholder of Branin, solicited several
The proposed defendants, either directly or through others, made material misrepresentations
M. Wein failed to disclose that Millennium stock was not appropriate for unaccredited
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