SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 16607 / June 23, 2000
SECURITIES AND EXCHANGE COMMISSION v. ENTERPRISES SOLUTIONS, INC., et
al., Case No. 00 Civ. 2685 (Cedarbaum, J.) (U.S.D.C., S.D.N.Y.)
SEC FILES AMENDED COMPLAINT IN
ENTERPRISES SOLUTIONS LITIGATION
On June 23, 2000, the Securities and Exchange Commission filed an
amended complaint in its securities fraud case against Enterprises
Solutions, Inc. ("ESI"), Herbert S. Cannon, and John A. Solomon. The
amended complaint, filed in the United States District Court for the
Southern District of New York, alleges the same securities fraud
violations as did the original complaint, but, in accordance with a
direction from the court during a hearing held on May 26, 2000,
provides further specificity as to defendant Cannon's role with
Enterprises Solutions and his relationship with brokers in the Fort
Lauderdale office of Global Financial Group.
As previously announced, the Commission temporarily suspended trading
in ESI's stock for a ten-day period beginning March 30, 2000, based on
questions concerning the accuracy and completeness of assertions made
by ESI in its filings with the Commission, in its recent press
releases, and on its Internet website, including questions about the
identity of persons in control of the operations and management of the
company. See Exchange Act Rel. No. 42593 (March 30, 2000). The
Commission originally filed its securities fraud case against ESI and
the other defendants on April 6, 2000, at which time it also obtained
an immediate asset freeze preventing the removal of more than $2.3
million in assets from the securities accounts of relief defendants
Rowen House Limited and Montville Limited, both based in Gibraltar.
See Lit. Rel. No. 16506 (April 7, 2000). On May 1, 2000, after the
Commission presented further evidence in the case, the court entered a
preliminary injunction extending the asset freeze pending a final
resolution of the matter at trial. See Lit. Rel. No. 16543 (May 9,
2000). The case has been proceeding against all defendants, and the
court has not yet set a date for trial.
This enforcement action is part of the Commission's four-pronged
approach to attacking microcap fraud enforcement, inspections,
investor education and regulation. For more information about the
SEC's response to microcap fraud, visit the SEC's Microcap Fraud
Information Center at . Information on trading suspensions is
available at .
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SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. ENTERPRISES SOLUTIONS, INC., et al., Case No. 00 Civ.
ENTERPRISES SOLUTIONS LITIGATION
On June 23, 2000, the Securities and Exchange Commission filed an amended complaint in its
The amended complaint, filed in the United States District Court for the Southern District of
The Commission originally filed its securities fraud case against ESI and the other
See Lit.
On May 1, 2000, after the Commission presented further evidence in the case, the court
The case has been proceeding against all defendants, and the court has not yet set a date for
This enforcement action is part of the Commission's four-pronged approach to attacking
For more information about the SEC's response to microcap fraud, visit the SEC's Microcap
Information on trading suspensions is available at.
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