UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16626 / July 13, 2000
SECURITIES AND EXCHANGE COMMISSION V. STADTT MEDIA, L.L.C., ANTHONY B.
BENAVIDES, ROBERT M. MARTINEZ, JEFFERSON F. SANTOS, AND LANA M. ST.
MARTIN (DEFENDANT SOLELY FOR PURPOSES OF EQUITABLE RELIEF) Civil
Action No. 3-00CV1489-P (N.D. Texas, Dallas Division)
SEC HALTS FRAUDULENT SECURITIES OFFERING BY
PURPORTED INTERNET COMPANY
The Securities and Exchange Commission ("SEC") announced that on July
12, 2000, it filed a civil action in U.S. District Court for the
Northern District of Texas to halt a fraudulent securities offering by
a Dallas company which claims to operate an Internet business. U.S.
District Judge Sydney Fitzwater granted the SEC's request for a
temporary restraining order, asset freeze and the appointment of a
Receiver for the benefit of defrauded investors. Named as defendants
or relief defendants in the suit are
* Stadtt Media, L.L.C., a Texas limited liability company formed in
December 1999 purportedly to market magazines on an Internet
website called . According to its articles of organization, the
authority to manage Stadtt Media is vested in a two-member board
of managers.
* Anthony B. Benavides, age 26 and a resident of Addison, Texas.
Benavides is half owner, chief executive officer, and a manager of
Stadtt Media.
* Robert M. Martinez, age 31 and a resident of Plano, Texas.
Martinez is executive vice-president and vice-president of
marketing of Stadtt Media.
* Jefferson F. Santos, age unknown, and a resident of Dallas, Texas.
Santos is employed by Stadtt Media to solicit prospective
investors for the company.
* Lana M. St. Martin, age 27 and a resident of Addison, Texas. St.
Martin is half owner, the company secretary, treasurer, and a
manager of Stadtt Media. St. Martin received investor funds and/or
assets purchased with investor funds. She is included in the
lawsuit as a defendant solely for the purposes of equitable
relief.
The Complaint alleges that since February 2000, Stadtt Media has been
selling units of membership interest ("Units") to investors
purportedly for the development of an Internet website called . The
company claims in its offering materials that will enable computer
users to read digitally-reproduced, mainstream magazines online and
translate these magazines into 25 languages. The company represents
that this website will be up and running within 30 days. To date,
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission announced that on July 12, 2000, it filed a civil
U.S. District Judge Sydney Fitzwater granted the SEC's request for a temporary restraining
Named as defendants or relief defendants in the suit are * Stadtt Media, L.L.C., a Texas
* Anthony B. Benavides, age 26 and a resident of Addison, Texas.
* Robert M. Martinez, age 31 and a resident of Plano, Texas.
Martinez is executive vice-president and vice-president of marketing of Stadtt Media.
* Jefferson F. Santos, age unknown, and a resident of Dallas, Texas.
St. Martin is half owner, the company secretary, treasurer, and a manager of Stadtt Media.
St. Martin received investor funds and/or assets purchased with investor funds.
She is included in the lawsuit as a defendant solely for the purposes of equitable relief.
The Complaint alleges that since February 2000, Stadtt Media has been selling units of
The company claims in its offering materials that will enable computer users to read
Among other things, they are claiming that the company owns patents or patents-pending on
The SEC is seeking in the lawsuit permanent injunctions against future violations of the
Investors are advised to read the SEC's "Cyberspace" Alert before purchasing any investment
A user friendly form to assist you in making a report is available at the SEC Home Page
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