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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES EXCHANGE COMMISSION CIVIL CONTEMPT INTERNET UNITED STATES DISTRICT COMPLAINT ALLEGES PYRAMID SCHEME PRELIMINARY INJUNCTION PENTAGONO INVESTOR ITALIAN ENTITY PROMOTING FUTURE STRATEGIES SRL STRATEGIES SRL A/K/A STATES DISTRICT COURT NORTHERN DISTRICT GEORGIA VIOLATIONS ACT SOLICITATION PURCHASE WORLDWIDE PYRAMID SCHEME THEREUNDER UNITED STATES RESIDENTS CERTIFICATES CARD PURCHASE ORDERS CPOS UNITED STATES PARTICIPANTS |
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16348 / November 9, 1999
CIVIL CONTEMPT SOUGHT AGAINST ITALIAN ENTITY PROMOTING PYRAMID SCHEME
OVER THE INTERNET
SECURITIES AND EXCHANGE COMMISSION v. FUTURE STRATEGIES SRL a/k/a
FUTURE STRATEGIES INTERNATIONAL, United States District Court for the
Northern District of Georgia, Civil Action No. 1 99-CV-1199-JTC.
The Securities and Exchange Commission announced that, on or about
November 5, 1999, it filed an application with the United States
District Court for the Northern District of Georgia seeking an order
of civil contempt against Future Strategies Srl a/k/a Future
Strategies International ("Future Strategies"), an Italian entity
headquartered in Carpi, Modena, Italy. The Commission's application
seeks an order to show cause why Future Strategies should not be held
in civil contempt for failing to comply with the Court's oral order
converting the temporary restraining order to a preliminary
injunction, and the Court's subsequent written order of preliminary
injunction entered on June 16, 1999 enjoining Future Strategies from
violations of the registration and anti-fraud provisions of the
federal securities laws. Future Strategies consented to the entry of
the preliminary injunction and other relief without admitting the
allegations in the Commission's complaint.
The Commission's complaint alleges that Future Strategies is engaged
in an ongoing, worldwide pyramid scheme, known as "Pentagono,"
promoted over the Internet. Such conduct violates Sections 5(a), 5(c)
and 17(a) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The
Commission's complaint alleges that, from at least May 1998, Future
Strategies solicited United States residents to purchase Pentagono
"Certificates," now called "Card Purchase Orders" or "CPOs," which
Future Strategies prepared and issued. Thousands of United States
participants have invested in this scheme. The complaint alleges that
Future Strategies, as part of its solicitation, claims that an
investor can earn up to $116,400 from an investment of approximately
$120 through Pentagono.
See also L.R. 16135 (May 11, 1999) and L.R. 16213 (July 16, 1999).
_________________________________________________________________
Modified 11/12/1999
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